UPDATE: Commonwealth Bank Upgrades ResMed to Buy Following Q4 Beat

Commonwealth Bank increased its rating on ResMed (NYSE: RMD) 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.

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