RBC initiates ResMed coverage at 'underperform', cites estimates 'too optimistic'

ResMed

14/07/2021 06:54

** RBC broker firm initiates coverage on ResMed Inc  RMD.N 
 RMD.AX  at "underperform" and a price target of A$30 on the
co's ASX-listed shares
    ** Says the U.S.-based medical equipment maker will benefit
short term from the easing of COVID restrictions and a
competitor product recall 
    ** We believe consensus estimates are too optimistic and the
stock price has run too hard - RBC
    ** Brokerage expects ResMed to capture a large share of new
patients and can increase its production by 5-10% in FY22
    ** Stock up as much as 1.3% to A$33.6, its biggest intraday
pct gain since July 7
    ** ResMed up 21.9% this year, as of last close

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))