Needham & Company Downgrades ResMed (RMD) to Hold

Needham & Company downgraded ResMed (NYSE: RMD) from Buy to Hold.

Analyst Mike Matson commented, "We expect RMD's revenue growth to slow significantly as it faces three headwinds during CY16: tough comps from the AirSense/AirCurve flow generator launch, increased competition from Respironics' new products, and additional Medicare reimbursement cuts. While we believe that these are accounted for in consensus estimates, we think there is a greater probability of downside than upside to estimates and we worry that slowing growth could drive P/E multiple compression. As a result, we are downgrading RMD to Hold."

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 $56.13 yesterday.

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