The healthcare sector has been one of the best-performing sectors for ASX share market investors over the past decade and given the tailwinds of ever greater public and private spending on healthcare it's not hard to see why. Companies like Cochlear Ltd (ASX: COH), CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD) have all thumped the market over that period.
The Fisher & Paykel Healthcare Ltd (ASX: FPH) share price has also more than tripled over the past 5 years as the sleep treatment specialist grows sales, profits and dividends.
Today the ASX-listed shares change hands for $14.63, but could have some down days ahead if the analysts at Goldman Sachs are on the money with their $13.90 12-month share price target on the business.
The price differential means Goldman's has a sell rating on shares partly because it feels Fisher & Paykel could continue losing market share in the key space of treating sleep apnea via the sale of masks. It is also paring back its expectations for gross margin growth with margins being key drivers of analyst ratings for medical device businesses.
However, on the plus side the analysts acknowledge they may be too bearish if Fisher & Paykel's new face mask gains FDA approval sooner than expected and sales take off.
