ResMed's 1Q results were ahead of Morgans expectations as gross margins expanded on strong demand and price rises, though operating margins fell on higher opex. A strong earnings trajectory is anticipated and the Add rating is retained.

Supply chain pressures are easing, notes the analyst, and management believes device production can be increased to drive revenue growth. The target eases to $37.00 from $37.08.

Sector: Health Care Equipment & Services.

Target price is $37.00.Current Price is $33.91. Difference: $3.09 - (brackets indicate current price is over target). If RMD meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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