Opinions
The Panic-Proof Portfolio (Stockchase Research)
ResMed Inc.
RMD-N
TOP PICK
Mar 20, 2025
$221.110
Stock price when the opinion was issued
Healthcare
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
BUY
They make sleep apnea machines, but now make ventilators during quarter. Last-October they just reported a super quarter that pushed the stock from $180 to $220 in days. It's pulled back to $211 because of positive vaccine news. It'll get a boost from their sleep apnea machines after Covid when people will visit their doctors again.
Healthcare
Premium content
PAST TOP PICK
Premium content
PAST TOP PICK
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
RMD has been showing positive momentum recently, it is nearing in on its all-time highs, and forward margin expansion is expected to be quite positive. Analyst estimates are trending higher, its margins have been growing, and it generats strong free cash flow, which is partly used for dividends, buybacks, and growing the balance sheet. It is trading at a reasonable valuation of 25X forward earnings, and it has structural tailwinds. We would be comfortable buying the name here today for a long-term hold.
Unlock Premium - Try 5i Free
Healthcare
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)