Needham & Company analyst Mike Matson reiterated a Buy rating and raised his price target on ResMed (NYSE: RMD) to $66.00 (from $65.00) following solid Q4 results driven by flow generator product cycle.

Matson commented, "RMD's revenue and EPS beat consensus as its revenue growth reached a five-year high at 17% CC. But as with prior quarters, RMD's gross margin was weaker than expected due to currency and mix though this was mostly offset by lower SG&A and R&D. However, we still expect its gross margin to improve during FY16 as its mix shifts back toward masks and international sales, AirCurve and Astral sales increase, RMD cuts costs in its supply chain including using more sea vs. air shipping, and RMD sees a smaller currency headwind. We believe that consensus estimates remain conservative and we reiterate our Buy rating."

The firm trimmed FY 2015 EPS from $2.73 to $2.70 and FY 2016 EPS from $3.09 to $3.07.

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Shares of ResMed closed at $56.12 yesterday.