Jefferies has lifted its price target on Fisher & Paykel Healthcare shares to NZD47.00 from NZD46.00 while maintaining a Buy recommendation. The move follows the medical device manufacturer's updated guidance for fiscal 2026, released on January 31, 2026, which showed stronger expected revenue and profit than previously signalled.
Updated company guidance
Fisher & Paykel Healthcare set operating revenue guidance for fiscal 2026 at NZD2.3 billion and forecast net profit after tax of NZD450-470 million. The company's prior guidance range for revenue was NZD2.17-2.27 billion, with net profit guidance of NZD410-460 million. Alongside these higher top- and bottom-line targets, management adjusted its foreign exchange rate assumptions to NZD:USD 0.60 from 0.57, NZD:EUR 0.51 from 0.50, and NZD:MXN 10.44 from 10.63.
Analyst reaction and model changes
In response, Jefferies raised its forecasts for the company, increasing the expected hospital segment growth to 14.1% from 11.1% and lifting the homecare growth projection to 13.3% from 11.5%. The firm also improved its gross margin trajectory for fiscal 2026 and beyond. These adjustments produced a 2.3% rise in Jefferies' earnings per share estimate for fiscal 2026 and a 4.3% increase for fiscal 2027.
Tariffs and assumptions
Jefferies' prior work on tariffs is reflected in its modelling assumptions: the firm previously estimated that U.S. tariffs amount to roughly 1% of total revenue, based on an assumption that approximately 60% of product volumes originate in Mexico and that 43% of the company's revenue is generated in the U.S. The company's revised guidance does not include potential refunds of U.S. tariffs following recent U.S. Supreme Court rulings that found reciprocal tariffs unconstitutional.
Investor resources
Additional analytical content is available to subscribers, including 13 ProTips covering topics such as the company's 12 consecutive years of dividend increases and its strong financial health rating.
Bottom line
Jefferies' modestly higher price target and upgraded estimates reflect the clearer, stronger fiscal 2026 guidance from Fisher & Paykel Healthcare and corresponding model adjustments for growth and margins. The firm's prior tariff assumptions and the exclusion of potential tariff refunds from the revised guidance remain notable factors to monitor.