Piper Jaffray downgraded ResMed (NYSE: RMD) from Overweight to Neutral with a price target of $57.00 (from $65.00).

Analyst Matt O'Brien commented, "We are downgrading RMD to Neutral from Overweight and lowering our PT to $57 from $65. The genesis of our downgrade is that we believe headwinds and the lack of near term catalysts simply will not support multiple expansion and will keep the stock pinned within a tight trading range for several quarters. Specifically, the company continues to face difficult domestic generator comps, the mask business has yet to reaccelerate and is facing tough comps, we worry about some Brightree dissynergies, and the new respiratory opportunities (non-invasive ventilation and portable oxygen concentrators) likely will not meaningfully impact top-line results for several quarters. Couple those potential issues with a premium multiple (even if the stock opens down ~6% it’s multiple would still be 20x CY16E P/E for a low double digit EPS grower. Q3 Results Relatively In Line With Consensus. RMD reported revenue $453.9M (up 9% CC and 7% organically) compared to consensus $455.8M. From a profitability standpoint gross margin was below estimates, though was offset by SG&A spend that was also below estimates, resulting in adjusted EPS in line with consensus at $0.68."

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Shares of ResMed closed at $60.95 yesterday.