Analyst Lyanne Harrison of Bank of America Securities reiterated a Buy rating on Resmed (RMD – Research Report), with a price target of $220.00.
Lyanne Harrison has given her Buy rating for Resmed’s stock due to a multitude of positive indicators observed in the company’s recent performance and future projections. Harrison appreciates the strong growth in device sales, both domestically and internationally, along with an impressive expansion in non-GAAP gross margins that exceeded both year-over-year comparisons and consensus estimates. Significant growth in the company’s SaaS offerings and continued share buyback programs are also seen as favorable signs of Resmed’s commitment to growth and shareholder value.
Furthermore, Harrison is optimistic about Resmed’s prospects due to the potential of combined GLP-1 and CPAP treatments to enhance patient outcomes and drive revenue growth. The analyst’s confidence is bolstered by solid data backing this treatment combination, which indicates an increased likelihood of patients commencing CPAP therapy and a higher resupply rate for those on the combined treatment. Continuous margin expansion and strategic investments are expected to yield long-term benefits despite potential near-term volatility. This optimistic outlook, supported by the upcoming SURMOUNT-OSA study, reinforces the Buy rating and underscores the potential for Resmed’s stock to reach the price objective set by Harrison.
In another report released today, Needham also reiterated a Buy rating on the stock with a $215.00 price target.
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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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