Fisher and Paykel Healthcare Remains Expensive

We make no changes to our NZD 11.00 per share fair value estimate for narrow-moat-rated Fisher & Paykel Healthcare, and continue to rate the firm as overvalued. Our fiscal 2019 net profit after tax forecast of NZD 210 million stands and is at the top end of management's NZD 205-210 million guidance. However, we increase our fair value estimate for the Australian CDIs to AUD 10.70, due solely to the appreciation of the New Zealand dollar against the Australian dollar with the exchange rate currently at 1.03.