Bank of America Securities analyst Lyanne Harrison has maintained their bullish stance on RMD stock, giving a Buy rating on January 26.
Lyanne Harrison has given her Buy rating for Resmed’s stock taking into account a range of factors, including competitive advantages arising from recent developments in the industry. A key competitor, Philips, has entered into a consent decree with the Department of Justice, which restricts their ability to sell new CPAP/BiPAP devices in the US until certain requirements are met, likely spanning several years. This creates an extended period during which Resmed can increase its market share, benefiting from the recall of Philips’ products and potentially capturing new patient starts and repeat sales.
Furthermore, Harrison reiterates confidence in Resmed’s financial prospects, emphasizing the company’s attractive valuation at a 24x P/E ratio compared to its historical average of 34x and forecasting a robust 11% EPS compound annual growth rate from FY23 to FY26. In addition to the recall-related tailwinds, Resmed has demonstrated continued gross margin expansion and top-line growth, as evidenced in their second-quarter results for 2024. Despite potential risks related to GLP-1 treatments, the overall outlook remains positive, supporting the unchanged price objective of $220 per share.
In another report released on January 26, Mizuho Securities also maintained a Buy rating on the stock with a $195.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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).
Read More on RMD:
