ResMed will publish its first quarter earnings on October 29. Morgan Stanley suspects the uplift from ventilators sales will have peaked in the fourth quarter and the positive revisions to earnings have played out for the short term.
The business is expected to emerge from the pandemic in good condition although the valuation keeps the broker's rating at Equal-weight. Target is raised to $25.90 from $25.40. Industry view: In-Line.
Sector: Health Care Equipment & Services.
Target price is $25.90.Current Price is $25.74. Difference: $0.16 - (brackets indicate current price is over target). If RMD meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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