March quarter results alleviated concerns that growth was slowing in the core sleep business. The company is achieving a benefit from fixed cost leverage, with Deutsche Bank noting EBITDA margin expansion of 106 basis points.
The broker maintains a positive outlook and forecasts 12% growth in earnings per share in FY19-22. Buy rating and US$127 target maintained.
Sector: Health Care Equipment & Services.
Current Price is $15.98. Target price not assessed.
