Mid-Year Prospects: ASX Healthcare

Research evidence excerpt

Mid-Year Prospects: ASX Healthcare

J P M O R G A N Asia Pacific Equity Research

21 July 2026

Mid-Year Prospects

ASX Healthcare

This report forms part of the J.P. Morgan Australia Mid-Year Prospects series as Australia

we take stock at the mid-point of 2026 and set out our Top Picks and Least Preferred

Australian Healthcare

stocks for the remainder of the year.

Chris Cooper, ACA CFA AC

(61 2) 9003-6221

chris.cooper@jpmorgan.com

Top Pick – Fisher & Paykel Healthcare (FPH AU, OW) J.P. Morgan Securities Australia Limited

Double-digit organic growth underpins high-teens cash EPS growth

High and sustained organic growth. FPH is a global leader in respiratory support.

The core Nasal High Flow technology continues to penetrate its traditional critical

care markets, but the most appealing feature of this current equity story is the clear

success in expanding the opportunity set in two different directions simultaneously

(both towards more acute settings traditionally reserved for Non-Invasive

Ventilation, but also increasingly into lower acuity settings, such as the ED and

general ward). Hospital hardware growth of >45% in 2H26 increased the installed

base meaningfully (the platform for consumables, which drives >90% of revenue/

value). The NZ trade data for 1Q27 suggests an encouraging start to the year

(exports of FPH products to US, Europe and Australia grew +30-35% vs pcp. We

forecast organic revenue CAGR of +12% (FY26-29e), well above the average of

the HC sector (+7%). See our recent initiation here.

GM accretion drives high-teens growth. Much of the debate through June was

on the GM profile and whether there would be enough of a deterioration in supply

chains/input costs to derail the positive trajectory (pathway to 65% target). These