ResMed (RMD) PT Lifted to $57 on Solid Q1

Piper Jaffray analyst David Clair reiterated an Overweight rating and boosted his price target on ResMed (NYSE: RMD) price target of $57.00 (from $55.00) following solid Q1 results.

Clair commented, "ResMed reported 1Q15 revenue of $380.4M, above consensus' $374.8M and our $373.3M estimates, with a U.S. rebound, OUS results and new product launches driving the upside. Adjusted EPS of $0.59 was $0.01 ahead of our in-line $0.58 estimate. Given stronger-than-expected flow generator results, we are increasing our growth rates modestly, although we are tapering our 2Q15 mask expectations to reflect CB2 related price pressure, although these should normalize in 2H15. Our $57 price target (was $55) is based on 17x (was 16x) our CY2016 EPS estimate of $2.97 + net cash/share, with the higher multiple reflecting expectations for ongoing improvement in U.S. results."

The firm adjusted FY 2015 EPS from $2.59 to $2.58 and set FY 2016 at $2.82.

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 $47.70 yesterday.

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