ResMed will report its first-quarter results on 30 October. UBS forecasts revenue growth for US/Canada/Latin America to be 3%. Europe and Asia are expected to show a revenue growth of 5%. Gross margin is expected to be flat versus the fourth quarter and net profit is forecast to be up 12% versus last year.
The broker also anticipates ventilator sales this quarter to be down circa -65% versus the June quarter although still well above pre-covid-19 levels.
Believing the fundamental drivers of longer-term growth remain intact, UBS maintains its Neutral rating with a target price of US$200.
Sector: Health Care Equipment & Services.
Current Price is $25.11. Target price not assessed.
