0032 GMT - Breathing mask maker Fisher & Paykel Healthcare adds Morgan Stanley to its bulls despite tariff headwinds in FY 2026. Fisher & Paykel Healthcare's share price eased after its annual result, which analyst David L. Bailey attributes to weaker-than-expected FY 2026 revenue and net profit guidance. Still, MS thinks growth in new apps revenue will support group-wide revenue over the medium term, with margin improvement underpinning attractive EPS growth. "While valuations are elevated, Fisher & Paykel Healthcare compares favorably relative to the sector on a number of key financial metrics," says MS, as it upgrades to the stock overweight from equal-weight. It expects Fisher & Paykel Healthcare will achieve its gross margin target of 65% in FY 2028, and its Ebit margin goal of 30% in FY 2029. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
June 01, 2025 20:32 ET (00:32 GMT)
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