UPDATE: BofA Securities Upgrades ResMed (RMD) to Buy; Sees Q1 'Beat'

October 20, 2022 6:59 AM EDT
Get Alerts RMD Hot Sheet
Price: $221.32 -1.46%

Rating Summary:
    12 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 31 | New: 13
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(Updated - October 20, 2022 9:10 AM EDT)

BofA Securities analyst Lyanne Harrison upgraded ResMed (NYSE: RMD) from Neutral to Buy with a price target of $260.00 (from $245.00) as they expect a Q1 beat and a more positive outlook.

The analyst commented, "We are bullish on RMD’s FY23/FY24 trading given (1) increased input supply availability; (2) C2C device and AS11 production ramp up; and (3) strong pipeline and high patient engagement. BofA revenue estimates are ahead of the Street (FY23e/FY24e +5%/+4%). The stock is trading at 32x P/E, 1SD below historical average (35x), with earnings upgrade potential at 1Q23 trading result. Upgrade to Buy. DCF-based PO increased to $260/shr (from $245/shr) following our estimate changes."

For Q1, the firm is more bullish than the Street: sees 1Q23e revenue of $980m (+4% vs cons $942m). Also more bullish at EPS ($1.56: cons $1.51; +3%).

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 $215.30 yesterday.

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