UPDATE: Northland Capital Markets Downgrades ResMed (RMD) to Underperform

Northland Capital Markets downgraded ResMed (NYSE: RMD) from Market Perform to Underperform.

Analyst Suraj Kalia said, "Our recent checks in the CPAP space highlight numerous forces that will, over time, work in concert to squeeze margins and top-line growth. As we have said in our initiation report (10/07/13), ResMed's model is highly sensitive to operating margins, and every 100 bps reduction in margins reduces equity value/share by $2. We believe consensus forward estimates, especially margin profiles are unrealistic; hence are downgrading the stock to an Underperform & maintaining our $40 PT."

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 $50.04 yesterday.

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