In a report released today, Michael Matson from Needham reiterated a Buy rating on Resmed (RMD – Research Report), with a price target of $215.00.
Michael Matson has given his Buy rating due to a combination of factors that indicate a strong performance and promising outlook for Resmed. In his analysis, Matson emphasizes Resmed’s solid financial results in the second fiscal quarter of 2024, where the company surpassed expectations for both revenue and earnings per share. Despite a slight deceleration in organic revenue growth, the firm’s profitability metrics improved, with a year-over-year gross margin increase and a significant boost in operating margin, attributed to effective restructuring efforts, including workforce reductions.
Moreover, Matson’s confidence in Resmed’s stock is reinforced by the company’s strategic initiatives that track patient engagement with their products, which have demonstrated increased usage rates. The favorable valuation of Resmed, coupled with the anticipation of sustained high single-digit revenue growth, underpins the recommendation to buy. Matson’s report also reflects a heightened price target, moving from $180 to $215, based on forward earnings estimates and observed expansion in peer group multiples, further solidifying the optimistic stance on Resmed’s market position and investment potential.
Matson covers the Healthcare sector, focusing on stocks such as Masimo, Atricure, and Hologic. According to TipRanks, Matson has an average return of -1.8% and a 47.19% success rate on recommended stocks.
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Resmed (RMD) Company Description:
Founded in 1989, California-based ResMed, Inc. is a medical equipment company. The company is engaged in the development, manufacturing, distribution, and marketing of medical equipment and software solutions. The company operates through two segments: Sleep and Respiratory Care, and SaaS (Software as a Service).
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