ResMed's March quarter beat expectations, featuring a tripling in ventilator production and supported by digital health services. Revenues grew 4.5% and profit 12.5%. While the virus has created headwinds for new sleep disorder diagnoses, the impact on the base business has been negligible, the broker notes. Headwinds are not insurmountable, and will ease as restrictions are lifted.

Target rises to $29.00 from $27.79, Add retained.

Sector: Health Care Equipment & Services.

Target price is $29.00.Current Price is $24.61. Difference: $4.39 - (brackets indicate current price is over target). If RMD meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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