In a preview of ResMed Inc’s results due on October 29, Credit Suisse forecasts Q1 revenue growth of 17%, earnings (EBIT) to rise by 13% and Non-GAAP profit up by 11.6% versus the previous corresponding period. A dividend of US$0.42 is estimated.
The analyst thinks recent share underperformance provides significant valuation upside. The $44 target price and Outperform rating are unchanged. It’s thought the market is underestimating the multi-year tailwind from the Philips recall.
Sector: Health Care Equipment & Services.
Target price is $44.00.Current Price is $35.72. Difference: $8.28 – (brackets indicate current price is over target). If RMD meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
