Jefferies Cuts Price Target on ResMed (RMD) to $56 Following 1Q Miss
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Jefferies maintained an Underperform rating on ResMed (NYSE: RMD), and cut the price target to $56.00 (from $58.00), following the company's 1Q earnings report. ResMed reported a $10mn revenue miss on a $0.02 EPS miss. Organic growth of 3% drove EPS growth of 7%; however, excluding the benefit of a lower tax rate, $1.3mn in one-time gains, and $0.06 from Brightree, underlying EPS declined 9% from last year. Philips reported high-single digit category growth while Resmed reported +3% organic growth and +5% US growth. Underlying Sleep flow gen growth grew +4% versus +19% through last year.
Analyst Anthony Petrone commented, "RMD put up a $10mn/$0.02 miss; however, ex-Brightree, lower tax and onetime other gain underlying EPS declined 9% versus last year. Results were pressured by mask share losses and price erosion in the core Sleep market—risks we highlighted in our recent surveys and downgrade. Looking ahead, the new AirFit F20 mask launch will provide some offset but to what extent is unclear. Shares are still overvalued and we are lowering estimates and PT to $56."
Shares of ResMed closed at $64.13 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co, Earnings
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