Analyst Lyanne Harrison from Bank of America Securities reiterated a Buy rating on Resmed and keeping the price target at $280.00.
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Lyanne Harrison has given his Buy rating due to a combination of factors including the strong performance and potential of Resmed’s mask portfolio, particularly in the US market. The company’s mask revenue is expected to outperform with a projected increase, supported by the popularity of the N30i mask and a seasonal uptick in orders. Additionally, Resmed’s device revenue is anticipated to reach new highs, driven by heightened awareness of obstructive sleep apnea and the absence of a major competitor in the US market.
Another factor contributing to the Buy rating is Resmed’s gross margin performance, which is expected to exceed the upper end of its guidance range, aided by a favorable mix of mask products and operational efficiencies. While there are concerns about increasing competition and macroeconomic uncertainties, the current market dynamics and Resmed’s strategic positioning provide a positive outlook for the company. Harrison’s analysis suggests that Resmed is well-positioned to capitalize on these opportunities, justifying the Buy recommendation.
In another report released on July 16, Mizuho Securities also upgraded the stock to a Buy with a $270.00 price target.