Resmed Inc (RMD) Receives a Hold from Needham


In a report released today, Michael Matson from Needham maintained a Hold rating on Resmed Inc (NYSE: RMD). The company’s shares closed yesterday at $98.50.

Matson wrote:

“RMD’s revenue and EPS beat consensus in F1Q19. Revenue growth improved to 12% CC organic in F1Q19 vs. 10% CC in F4Q18. RMD’s gross margin was flat R&D leverage allowed RMD’s operating margin to increase by 300 bps Y/Y. We believe that RMD can sustain low double-digit digit revenue growth over the next few years and continue to drive modest operating leverage. However, given our expectation of slower EPS growth in FY19 vs. ~25% in FY18) due to headwinds from Australian tax changes and RMD’s valuation, we maintain our Hold rating.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 11.4% and a 60.4% 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 $93.50, implying a -5.1% downside from current levels. In a report issued on October 12, BMO Capital also reiterated a Hold rating on the stock with a $107 price target.

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Based on Resmed Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $110 million. In comparison, last year the company had a net profit of $86.13 million.

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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.

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