BofA Securities Downgrades ResMed (RMD) to Underperform on Valuation

BofA Securities analyst Lyanne Harrison downgraded ResMed (NYSE: RMD) from Neutral to Underperform with a price target of $221.00 (from $216.00) on valuation after an "over-reaction" to the Phillips recall.

The analyst commented, "We downgrade ResMed (RMD)to Underperform from Neutral. Whilst we like the company and are positive on the long term outlook, we believe that the market has over-reacted (+8%) to competitor’s product recall. The stock is trading at an all-time share price high and well above 1SD historical P/E (see Exhibit 1). We lift our PO to $221 per share (from $216/share) to reflect potential revenue upside (FY22 +$25m) and market share gains (BofAe FY22 RMD +3%/ Philips (PHIA) -3%) but note that this is not without challenges."

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 $236.46 yesterday.

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