The results in the fourth quarter beat Credit Suisse estimates. ResMed has guided to US$300-350m in incremental device sales in FY22 as a result of the recall by Philips.

Yet, the company is constrained by chip shortages and this will limit its ability to ramp up production significantly in the short term. Credit Suisse believes there is a multi-year opportunity for ResMed, particularly with the launch of the AirSense 11 in the next quarter.

Outperform rating maintained. Target is raised to $40.50 from $37.00.

Sector: Health Care Equipment & Services.

Target price is $40.50.Current Price is $37.27. Difference: $3.23 - (brackets indicate current price is over target). If RMD meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena