Needham Maintains a Hold Rating on Resmed Inc (RMD)

In a report released today, Michael Matson from Needham maintained a Hold rating on Resmed Inc (RMD). The company’s shares closed yesterday at $113.03, close to its 52-week high of $116.64.

Matson wrote:

“RMD’s AirSense flow generator platform is about four years old and even though RMD’s software products have probably extended its hardware product life cycles, we think it is likely that RMD launches a new platform in CY19. Flow generator launches have historically resulted in higher revenue growth and we expect a similar, though potentially smaller, impact from its next launch. And on 12/3/18, RMD announced an agreement to acquire Propeller Health for $225M. We maintain our Hold rating given RMD’s valuation though confirmation of a new flow generator product cycle could make us more positive on RMD shares.”

According to, Matson is a 5-star analyst with an average return of 11.9% and a 64.5% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on Resmed Inc is a Moderate Buy with an average price target of $94.50.

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Based on Resmed Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $106 million. In comparison, last year the company had a net profit of $86.13 million.

Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock.

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ResMed, Inc. engages in the development, manufacturing, distribution, and marketing of medical equipment and software solutions. Its product portfolio includes devices, diagnostic products, mask systems, headgear and other accessories, and dental devices. The company was founded by Peter C. Farrell in June 1989 and is headquartered in San Diego, CA.