ResMed Upgraded by Bank of America Corp. to “Buy” (RMD)
ResMed (NYSE:RMD) was upgraded by equities researchers at Bank of America Corp. from a “neutral” rating to a “buy” rating in a research report issued on Monday, Stock Ratings Network.com reports.
The analysts wrote, “We upgrade RMD to Buy with expectation of a near term new Flow Generator (FG) release and greater confidence on Gross Margin expansion from FG mix. Whilst we expect 1Q14 will reveal weaker US FG growth (MLe +6%), a key metric for the high levels of short interest, we predict: 1) a new FG product launch, 2) strong ROW FG growth (from SG&A reallocation), and 3) a higher Gross Margin (VPAP/ Bi-Level now >25% of sales) will be enough to get the stock through this key 1Q juncture.”
Shares of ResMed (NYSE:RMD) traded up 0.69% during mid-day trading on Monday, hitting $49.52. 338,710 shares of the company’s stock traded hands. ResMed has a 52-week low of $37.07 and a 52-week high of $51.40. The stock’s 50-day moving average is $46.96 and its 200-day moving average is $46.3. The company has a market cap of $7.035 billion and a P/E ratio of 23.42.
ResMed (NYSE:RMD) last announced its earnings results on Thursday, August 1st. The company reported $0.62 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.62. The company had revenue of $414.60 million for the quarter, compared to the consensus estimate of $410.89 million. During the same quarter last year, the company posted $0.53 earnings per share. ResMed’s revenue was up 11.5% compared to the same quarter last year. Analysts expect that ResMed will post $2.58 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks downgraded shares of ResMed from an “outperform” rating to a “neutral” rating in a research note to investors on Monday, August 12th. They now have a $52.20 price target on the stock. Separately, analysts at Canaccord Genuity raised their price target on shares of ResMed from $48.00 to $49.00 in a research note to investors on Monday, August 5th. They now have a “hold” rating on the stock. Finally, analysts at Deutsche Bank upgraded shares of ResMed from a “hold” rating to a “buy” rating in a research note to investors on Friday, August 2nd. They now have a GBX 54 ($0.84) price target on the stock, up previously from GBX 46 ($0.72).
Eight research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. ResMed presently has an average rating of “Hold” and a consensus target price of $47.53.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 17th. Shareholders of record on Tuesday, August 20th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.03%. The ex-dividend date is Friday, August 16th. This is a positive change from ResMed’s previous quarterly dividend of $0.17.
ResMed Inc, (NYSE:RMD) is a holding company for the ResMed Group.
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