RMD has been walloped over -25% from its August high following its disappointing earnings result, 4Q revenue was a touch below consensus but the market was caught off guard by weaker margins when expectations were for expansion. The result was poor but the rerating has gathered momentum on investors concern that weight loss drug Ozempic will ultimately reduce obesity and subsequently the demand for RMD’s sleep disorder products, some major extrapolation in our opinion.
- We increased our RMD position to 5% into the recent sell-off but we have no intention of increasing further from here.
MM is long and cautiously bullish toward RMD
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