Results were broadly in line with Morgans estimates. Reimbursement changes across several countries have helped to increase the adaptation of cloud-based devices and this, in turn, has supported market share gains for ResMed.
The broker believes a growing installed base of connected devices and focus on resupply should bode well for continued strength in the high-margin mask/accessories category. Morgans maintains an Add rating and raises the target to $16.41 from $14.36.
Sector: Health Care Equipment & Services.
Target price is $16.41.Current Price is $14.22. Difference: $2.19 – (brackets indicate current price is over target). If RMD meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).