UPDATE: Norhtland Downgrades ResMed; Maintains $40 Price Target

In a note released Tuesday morning, Northland Securities downgraded ResMed Inc. RMD from Market perform to Under perform and maintained their $40 price target. In the note Norhtland analyst cited "numerous forces" in the CPAP space that will squeeze margins and the top-line overtime. Furthermore, The analysts noted that ResMed's model is "highly sensitive" to operating margins and believe that consensus estimates are "unrealistic". Possibly reacting to this downgrade, shares of ResMed are down a little over one percent in today's trading.