Goldman Sachs Upgrades ResMed (RMD) to Buy

September 23, 2013 8:39 AM EDT Send to a Friend
Get Alerts RMD Hot Sheet
Price: $65.71 +1.34%

Rating Summary:
    7 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 19 | New: 16
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Goldman Sachs upgraded ResMed (NYSE: RMD) from Neutral to Buy.

Analyst Ian Abbott said, "We upgrade our rating to Buy (from Neutral). Our 12-month, 1-yr forward P/E based target price implies a return of 9%. While RMD is not without risk in the near term given competitive bidding dynamics, we believe that it will deliver double digit EPS growth in FY14E. This is due primarily to strong patient demand, positive mix shift to higher-end devices and limited market share losses, if any. We expect pricing declines will cap revenue growth in FY14, but FX-tailwinds provide a corresponding offset on COGS."

For an analyst ratings summary and ratings history on ResMed click here. For more ratings news on ResMed click here.

Shares of ResMed closed at $52.70 yesterday.

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