Shares in Fisher and Paykel Healthcare third-best performer on NZX 50 after raising earnings forecast

Shares in Fisher & Paykel Healthcare are the third-best performer on New Zealand's benchmark NZX 50 Index today after the maker of breathing masks and respirators raised its 2014 earnings forecast as new products boost sales and widen margins.

Shares in Fisher & Paykel rose 1.1 percent to $3.56 after chairman Mike Daniell told shareholders at the company's annual meeting in Auckland yesterday that 2014 profit is likely to be $90 million to $95 million, up from its May forecast of $85 million to $90 million and ahead of its 2013 profit of $77 million.

The latest forecast is Fisher & Paykel's fifth upgrade in a row for sales in constant currency terms, according to a report by brokerage Craigs Investment Partners, which rates the stock a 'buy' and raised its 12-month price target to $4.45 from $4.20.

"We believe the near and long term implications of the step change in growth for new respiratory and acute care products remains under appreciated by the market," Craigs analysts Stephen Ridgewell, Chris Byrne and Bryant Cheong said in a note. The brokerage has raised its 2014 profit forecast by 2.2 percent to $97.1 million, noting it is 5 percent above the mid-point of Fisher & Paykel's guidance range.

BusinessDesk.co.nz

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