Forsyth Barr analysts said investors already know the healthcare exporter will have an exceptional year and will focus on any hints about 2022 earnings.
“We expect it will be difficult for FPH to provide much guidance, however, any insights into clinician behaviour as covid-19 demand has slowed/subsided or country-specific examples to add greater colour is a key area of focus.”
Equity analysts are forecasting 2022 net profit to land anywhere between $359 million and $443m – depending on how covid-19 hospitalisations track during the year – a significant decline from the $545m expected on Thursday.
Sam Trethewey, a portfolio manager at Milford Asset Management, said investors were showing some caution about the strength of the company’s long-term
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
FPH share price is a real head-scratcher that perhaps shows more than anything how illogical the markets have been over the past year or so. They are a fundamentally very sound company with a product line that not only directly "benefits" from the pandemic but also should have a very long tail of increased sales due to the increased market penetration.
Yet the share price has lagged behind many others (FPH was around $20 before COVID) with around a 50-60% increase. Meanwhile other companies have much bigger increases despite being potential "victims" of COVID. Even companies that are basically screwed for the next few years (im looking at you AIRNZ and AIA) have a SP that doesn't appear to reflect reality.
I'm not sure what to make of it - the so-called re-opening stocks are surging but a high quality growth company such as FPH is struggling.
As an example just a few days ago there was a much-awaited clinical trial published that is very supportive for Optiflow - FPH main growth product - but it doesn't even register (The study has shown that use of Optiflow - even without extra oxygen- improves survival in children with lung infections in developing countries (Africa) - think about this, its plausible that Optiflow works without oxygen- given what is happening in India this is huge).
Anyway enough of a rant from me - I still believe that FPH is a hugely undervalued company with a long runway for growth.....
Eventually SP will follow growth in EPS ....These technical moves of players getting in or out ..(.as its a huge institutional investor stock ) should not worry long term investors . FPH is doing well and will keep doing well . Tomorrow then next week in 3 investor days they will tell us how bright the future is for FPH
PS : Todays price action on huge volumes showing some big player getting out ...I understand two brokerages changed its buy rating recently ...but dont know which one !!
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Originally Posted by Old mate
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