Resmed – Support Level

Posted on | by Leon Hinde

ResMed is under Algo Engine buy conditions and is now up 84% since being added to our model in October 2018.

RMD delivered a solid earnings result and upgrades to earnings are partially offset by the stronger AUD.

RMD is looking to resume share buybacks in 2H21.

We see buying support at $26 and suggest investors look to accumulate the stock.

Resmed – Strong Earnings

Posted on | by Leon Hinde

ResMed is under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

Resmed reported better than expected 1Q21 earnings with group revenue up 10% and NPAT up 37% on the same time last year.

At 35x PE Resmed remains expensive and will need to maintain double-digit earnings growth to sustain the current valuation.

Buy on future share price weakness.

Resmed – Q4 Earnings

Posted on | by Leon Hinde

ResMed is under Algo Engine buy conditions and is a current holding in our ASX top 100 model portfolio.

RMD announced 4Q20 earnings, which were better-than-expected, underpinned by robust COVID-19 ventilator demand. However, modest revenue growth is expected in the near-term, implying limited near-term growth.

The 40x PE multiple looks too rich for the current earnings outlook. The forward dividend yield is 1%.

We suggest waiting for the next Algo buy signal to re-enter RMD on a pullback. Our new entry target is $22.