On Thursday the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was amongst the worst performers on the market.
The medical device company's shares finished the day lower by almost 3.5% to $11.54.
Why did its shares sink lower?
With no news out of Fisher & Paykel Healthcare, today's decline is likely to be related to a broker note out of Credit Suisse.
According to the note, the broker has downgraded its shares to an underperform rating with a NZ$12.00 ($10.92) price target.
Although Credit Suisse has been impressed with the progress the company has made over the last few years and sees little downside risk from its ongoing patent dispute, it has taken action on valuation grounds.
Which isn't hard to disagree with. At present Fisher & Paykel Healthcare's shares are changing hands at 38x trailing earnings.
