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

(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.

You May Also Be Interested In

• RBC Capital builds on confidence as Tesla (TSLA) shows they can spur demand growth
• Innovent Biologics Inc. (1801:HK) (IVBXF) PT Raised to HK$54.72 at Nomura/Instinet
• REA Group Ltd. (REA:AU) (RPGRY) PT Lowered to AUD105 at CLSA