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UPDATE: Bank of America Downgrades ResMed to Neutral on Valuation

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UPDATE: Morgan Stanley Reiterates On ResMed Following 1Q15 Earnings Report

Bank of America downgraded ResMed (NYSE: RMD) from Buy to Neutral.

Bank of America said, "Key result metrics of Revenue / NPAT / EPS were +4% / +2% / +2% better than BofAML and +3% / +4% / +3% stronger than Consensus. The increased Gross Margin of 61.8% (+40bps sequentially) met our forecast and beat Consensus (61.2%) reaffirming our views around product mix shift and RMD's ongoing success in the APAP category. RMD's momentum in this area is being driven by factors such as the ongoing move to Home Sleep Testing (HST), now 25% of the market, and reimbursement justification changes that are becoming based on patient compliance. Despite this, and our slight earnings upgrade, we cannot find sufficient new valuation upside to maintain our Buy call and downgrade to Neutral."

ResMed closed at $45.47 on Thursday.

Latest Ratings for RMD

DateFirmActionFromTo
Nov 2014Morgan StanleyMaintainsEqual-weight
Oct 2014Morgan StanleyMaintainsEqual-weight
Aug 2014JefferiesMaintainsHold

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Posted-In: Bank of AmericaAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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