UPDATE: Commonwealth Bank Upgrades ResMed to Buy Following Q4 Beat

Commonwealth Bank increased its rating on ResMed

from Hold to Buy after the company reported strong fourth quarter results that beat expectations. Commonwealth Bank commented, "Gross margin outperformance to continue: Gross margin expansion was driven by a combination of positive product mix (Bi-level, APAP and masks) and manufacturing efficiencies (S9 platform consolidation), which more than offset FX headwinds. We expect these two factors will continue to boost FY13 gross margins with: 1) ongoing transition to HST driving further growth in higher-margin APAP devices, 2) continued strength in high-end bi-level sales with the launch of the VPAP ST and STA models on the S9 platform, and 3) ongoing share gains in masks." ResMed closed at $35.29 on Monday.