Analyst offers rosy F&P Healthcare forecast

The end-of-year numbers for Fisher & Paykel Appliances and Healthcare are likely to attract plenty of market interest this week.

Forsyth Barr analyst Greg Main is forecasting the Healthcare company will return a full-year operating profit (ebitda) of $89.2 million, up 11.8 per cent on last year.

He predicted net profit would be about $58.9 million - up 7.7 per cent on the previous full year.

Main said a final dividend of 5.7c per share was expected, which would bring the total dividend to 10.7cps fully imputed - up from 10.4cps last year.

He rated the company - shares in which closed at $3 each on Friday - as one to buy.

His colleague John Cairns has cast his eye over Ryman Healthcare - which reports on Friday - and forecasts a profit of $22.5 million.

Despite last week's surprise SkyCity profit downgrade, another Forsyth Barr analyst, Jeremy Simpson, remains keen on the stock.

His view is that the company's 20 per cent share price decline from its high is an over-reaction and he reiterated his recommendation to accumulate.

"The SkyCity share price has significant uncertainty already factored into it and has substantial upside once near-term issues are worked through," Simpson said of the shares, which closed at $4.22 each on Friday.