Fisher & Paykel Healthcare shares are extending Friday’s gains, following broker upgrades from Citi and Morgan Stanley over the weekend.
Citi lifted its rating from Sell to Neutral, raising its price target by 42% to NZ$35.50. Morgan Stanley upgraded the stock to Overweight, increasing its target by 6.6% to NZ$38.90.
Citi analyst Mathieu Chevrier noted that United States tariffs are now “manageable” for the company, as they affect only New Zealand-manufactured Hospital division products. Chevrier added, “This leaves FPH with a 10 per cent US tariff on Hospital products made in NZ.”
He said the company expects to offset the estimated 75 basis points (bps) annualised margin impact through cost-saving measures, and noted that most of the Mexico-manufactured products are exempt under the United States–Mexico–Canada Agreement (USMCA). Homecare products for sleep apnoea are also exempt via the Nairobi protocol.
The company expects the margin impact to be spread over two years—50 bps in financial year 2026 and 25 bps in financial year 2027—delaying its recovery by around 12 months.
Fisher & Paykel shares gained 5.3% to close at NZ$33.93 on Friday. At midday Monday, they had gained 1.41% intraday, to $34.410.