So much guessing and second guessing of how much top line and bottom line will slip from the covid bump we had FY21. I think KFL summed it up well in their latest update on how to approach this.
We bought Fisher & Paykel Healthcare when the marketover-reacted to negative newsFisher & Paykel Healthcare’s Optiflow technology became the globalstandard for treating COVID last year. Demand for Optiflow surged.However, for the last 15 months, the market has been desperatelytrying to pre-empt and price the end of that surge. The market thought itsaw the end of the surge in May, when the company delivered weakerthan-expected results, and an uncertain short-term outlook saw the shareprice fall by 15%.To us, a key attraction of the company is its exceptionally long runwayfor growth. Around 50 million acute respiratory-illness patients a yearwould benefit from the Optiflow product. With Optiflow currentlytreating less than 10 million patients, we believe there is capacityto serve more. Investors who focus on the short-term, post-COVIDslowdown in demand, may end up limiting their potential participationin this forecast runway for growth.We bought more Fisher & Paykel Healthcare stock when the market’sknee-jerk reaction to short-term noise made the price attractive.
It's trading at 35 P/E and could comfortably trade at a 50 P/E like other blue chip medical companies. So room to absorb a pull back from FY21 bumper numbers (if any).
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Originally Posted by kiora
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