Opinions
Kash Pashootan
ResMed Inc.
RMD-N
PAST TOP PICK
Aug 15, 2017
Stock price when the opinion was issued
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18 million Americans have sleep apnea with many others undiagnosed. They have 2.5 billion nights of medical sleep data. They take cases out of hospitals and into homes. Based in Australia and the U.S. Shares have been been steadily rising. (1.3% dividend yield, Analysts' price target $109.75)
RMD provides cloud based digital medical devices to assist with sleep and respiratory monitoring and treatment — a steady and reliable business model. It trades at 26x earnings and supports a respectable ROE of 25%. We like that cash reserves are growing, while debt is retired and shares bought back. We recommend setting a stop-loss at $190, looking to achieve $271 — upside potential of 22%. Yield 1.0%
(Analysts’ price target is $271.71)
(A Top Pick May 13/16. Up 30.65%.) The leader in sleep apnea, and primarily manufactures the masks. Recently sold his holdings.