Fisher & Paykel Healthcare shares (ASX: FPH) closed 0.53% higher at A$31.98 on Thursday, testing a technical resistance level that has capped the respiratory device maker since March, even as Goldman Sachs removed the stock from its closely-watched APAC Conviction List in its latest monthly portfolio review.
The Fisher & Paykel share price is now down 1.2% year-to-date, underperforming the broader healthcare sector despite a string of positive fundamental developments including a robust FY26 result and fresh buy-side endorsements from tier-one investment banks. The conviction-list removal marks a tactical shift in Goldman’s positioning rather than a fundamental downgrade, yet the timing has introduced a near-term sentiment headwind for the New Zealand-based medical technology company.
Fundamental Setup
Fisher & Paykel delivered a strong financial performance for the year ended 31 March 2026, with operating revenue reaching approximately NZ$2.3 billion and net profit after tax landing at NZ$468 million, both at the upper end of management’s upgraded guidance range. The result represented material year-on-year growth and validated the company’s thesis that post-pandemic normalisation would not trigger a structural demand collapse in its core hospital and homecare respiratory therapy markets.
The company’s gross margin continued its recovery trajectory throughout FY26, benefiting from easing freight costs, improved manufacturing efficiency at its Mexico and New Zealand facilities, and a more favourable product mix. Management committed roughly NZ$235 million to research and development during the period, underscoring its strategy to maintain technological leadership in high-flow nasal therapy, humidified respiratory support, and sleep-disordered breathing solutions.
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Goldman Sachs’ decision to remove Fisher & Paykel shares from its APAC Conviction List does not signal a rating downgrade to the stock, which typically remains at Buy or Outperform within the firm’s broader coverage universe. Conviction-list removals are generally driven by relative-value considerations and portfolio construction dynamics rather than deteriorating company fundamentals.
However, the move can create tactical selling pressure, particularly among systematic and semi-passive mandates that key off high-conviction recommendations, and may discourage momentum buyers from pushing through established resistance levels.
The Street View
Price Targets
The removal comes against a backdrop of otherwise constructive sell-side sentiment. In April 2026, JPMorgan initiated coverage of Fisher & Paykel with an Overweight rating and a 12-month price target of NZ$37.50, citing the company’s global leadership position in respiratory devices, attractive structural growth drivers including ageing demographics and broader adoption of non-invasive therapies, and a fortress balance sheet capable of funding multi-year capacity expansion. Morgan Stanley has maintained its Buy rating with a NZ$40 target, while consensus estimates across major platforms imply mid-teens upside from current levels.
Management’s guidance commentary for FY27 points to continued revenue and earnings growth, supported by sustained hospital demand for acute-care respiratory products and ongoing adoption of homecare solutions. The company highlighted that its installed base of devices has expanded materially since the pandemic, creating a larger recurring consumables revenue stream and validating its long-term investment in clinical education and therapy awareness programmes.
Yet markets remain cautious about near-term catalysts. The stock has struggled to break convincingly above the A$32 level since March, reflecting a combination of forex sensitivity (earnings are materially exposed to movements in the New Zealand dollar, US dollar, and euro), and concerns that current valuations already embed a significant portion of the anticipated FY27 and FY28 earnings growth.
A sustained move above A$32 on increased volume would likely attract momentum and breakout buyers, potentially targeting the A$34–35 range. A failure to clear resistance, particularly in the context of Goldman’s conviction-list removal, could see the shares drift back lower and see traders rotate into names with clearer near-term catalysts.
