Fisher & Paykel Healthcare's FY24 result was stronger-than-expected by Ord Minnett driven by higher revenue, good cost control and better-than-expected gross margin expansion.

The underlying gross margin increased by 216bps to 61% due to lower freight rates, manufacturing efficiencies and increased pricing, which more than offset inflationary pressures, explains the analyst.

A NZ23.5c final dividend was declared, a 2% rise on FY23.

Management guides to revenues of between NZ$1.9-2bn in FY25.

The target rises to $23 from $22. The Lighten rating is retained on valuation 

Sector: Health Care Equipment & Services.

Target price is $23.00.Current Price is $26.39. Difference: ($3.39) - (brackets indicate current price is over target). If FPH meets the Ord Minnett target it will return approximately -15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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