** Jefferies says Fisher & Paykel Healthcare Corp's FPH.NZ combination of product innovation, promotion of clinical change and continuous operational improvement continues to deliver, following its annual results

** Brokerage upgrades stock to "buy" from "hold", hikes price target to NZ$40.9 from NZ$39.4

** Medical equipment maker on Wednesday reported FY25 net income of NZ$377.2 million ($224.70 million), beating its forecast of NZ$320 million to NZ$370 million

** Jefferies says FPH successfully converted clinical change into product sales through fiscal 2025, even with a moderate flu season

** Brokerage also believes limited tariff impacts and FPH's practice of continuous process improvement should lead to increased operating leverage

** Two of 12 analysts rate the stock "buy" or higher, eight "hold" and two "sell" or lower; their median PT is NZ$37, according to data compiled by LSEG

** Stock down 8.9% YTD, as of last close

($1 = 1.6787 New Zealand dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))