Weekly Reports | Dec 06 2024
Broker Rating Changes (Post Thursday Last Week)
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SOMNOMED LIMITED ((SOM)) Upgrade to Overweight from Market Weight by Wilsons.B/H/S: 0/0/0
SomnoMed is upgraded to Overweight from Market Weight with a higher target price of 45c by Wilsons.
Management announced an upgrade in FY25 guidance to around $105m in revenue and over $7m in earnings at the AGM, resulting from "de-risking" manufacturing in Manila, which freed up a 30% increase in sustainable capacity.
The analyst explains that this intervention has allowed the company to meet the order backlog and recapture previously lost customers from 2H24.
Wilsons sees the positive flow-on impacts as enabling SomnoMed to consider winding back its promotions and possibly implementing a slight price rise in 2H25.
Overweight rated. Target price: 45c.
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FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED ((FPH)) Downgrade to Market Weight from Overweight by Wilsons.B/H/S: 0/0/0
Wilsons notes Fisher & Paykel Healthcare's first-half results included 19% revenue growth year-on-year, with solid performance in Hospital and Homecare segments.
Gross margin reached 61.9%, exceeding guidance, though the broker anticipates softer improvement ahead with potential headwinds in FY26.
NewApps consumables grew 27%, driven by adoption in new settings such as anaesthesia, while Homecare benefited from mask launches and durable resupply demand, explains the analyst.
Wilsons lowers profit forecasts by between -2% to -4% for FY25-FY27, reflecting expectations for slower gross margin development. The rating is downgraded to Market Weight from Overweight, and the target eases to $34.93 from $35.
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