Needham & Company Upgrades ResMed (RMD) to Buy

Needham & Company upgraded ResMed (NYSE: RMD) from Hold to Buy with a price target of $77.00 following solid Q3 results as the product cycle drove faster growth.

Analyst Mike Matson comments, "RMD's F2Q15 revenue and EPS beat consensus. RMD's new products drove faster revenue growth, with global flow generator sales growth increasing to 20% CC from 12% CC in F1Q15 and mask growth increasing to 6% CC from 0% CC in F1Q15. Margins remained under pressure as pricing and mix drove a 250 bps Y/Y decline in gross margin, though we believe that this had been anticipated. Since we expect both revenue growth and margins to improve as the AirCurve bi-levels are launched more widely and as RMD laps its early CY14 mask price cuts, we are upgrading RMD shares to Buy from Hold."

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 $61.86 yesterday.

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