09/08/2024 09:27

ResMed Inc (RMD) $32.52

Sleep apnoea company RMD has experienced a wild ride over the last year as news from weight loss companies has impacted its share price week to week more than specific news about the company itself. Earlier this month, RMD delivered a largely in-line 4Q, with revenue and core EPS both close to consensus. Revenue growth was 9% y/y and core EPS showed 30% growth y/y.

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30/07/2024 09:27

ResMed Inc (RMD) v Dexcom (DXCM US)

RMD fell over 2% on Monday following an update from Nasdaq-listed Dexcom (DXCM US). The US-listed stock plunged over 40%, its largest drop in history, after they reported disappointing revenue and lowered its full-year guidance. Dexcom offers a suite of tools, such as continuous glucose monitors, for patients who have been diagnosed with diabetes.

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26/04/2024 09:17

ResMed Inc (RMD US) $US183.42

ResMed reported after the US market closed this morning with Q3 adjusted EPS of $2.13 ahead of the consensus of $1.91, a result that’s likely to be welcomed locally this morning, with the stock up ~5% in late trade. Earnings were helped by revenue of $1.2bn, which was 7.2% ahead of consensus; its quarterly dividend was maintained at 48c. Today's price action will be interesting as MM is not keen on stocks that cannot rally on “good news.”

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17/04/2024 09:35

ResMed (RMD) versus CSL Ltd (CSL)

The Australian Healthcare is trading at a ~70% premium to the ASX 200 on a 1-year forward PE, which is close to its recent normal; hence, we are considering switching with the sector as opposed to outright buying or selling. RMD & CSL are two very different healthcare businesses, although both suffered in 2023 at the hands of Ozempic et al.. In both cases, the sell-off was over-blown in our opinion, but that’s the nature of stocks when the crowd runs as one.

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12/04/2024 09:03

ResMed Inc (RMD) $29.56

RMD rallied +1.5% in a falling market on Thursday, an encouraging move for the sleep disorder business, which has been on a wild Ozempic ride over the last year – unfortunately, overnight trade in the US suggests it will struggle this morning. At MM, we’ve commented on many of RMD’s twists and turns through its volatile journey since many of us first heard about miracle slimming drugs, and after its 43% recovery, the risk/reward is diminishing fast for the bulls.

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28/03/2024 09:41

ResMed Inc (RMD) $29.93

RMD’s been on a wild Ozempic ride in 2023/4, but its recent ~40% bounce has restored a semblance of calm/normality to the stock. However, we shouldn't forget that RMD took an initial sharp downturn last August after an FY23 earnings miss; this weakness was compounded by demand concerns as the benefits of weight loss drugs got increasing media coverage. At some stage, we can see RMD entering a “holding pattern” as investors wait to see the difference between fact and fiction.

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14/03/2024 08:47

ResMed Inc. (RMD) $29.08

Ozempic et al. have made the last year a particularly torrid and uncertain time for sleep apnoea company RMD. In simple terms, if these new wonder drugs lead to fewer people carrying weight, it will theoretically reduce the demand for RMD products. After bouncing over 40% from its panic 2023 low, we are contemplating trimming our 5% holding from purely a volatility perspective.

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08/03/2024 09:03

ResMed Inc (RMD) $28.82

RMD has already surged +7.9% this week, helped by Evans and partners' upgrade earlier in the week from neutral to positive with a $31 price target.  Ironically, the stock was under pressure last week following commentary from US distributor AHCO suggesting slowing revenue growth in their sleep segment in 2024; now, after the release of the AirFit 40, an ultra-compact full-face mask, the stocks rallying strongly - this has not been a dull stock over the last six months.

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09/02/2024 09:31

ResMed Inc (RMD) $28.63

RMD has been discussed at length over recent months by both MM and the market after the stock plunged ~40% on fears around demand for its sleep apnoea products due to the new weight loss “wonder drugs” such as Ozempic. We increased our exposure to RMD into panic selling, although like most people, we did underestimate exactly how far it would fall. RMD reported better-than-expected 2Q earnings last month driven by better margins, hence, at this stage, we like the way the business is evolving.

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02/02/2024 09:08

ResMed Inc (RMD) $29.15

RMD rallied strongly in late January after reporting better-than-expected 2Q earnings, primarily driven by better margins, a welcome relief after the stocks plunge on demand fears courtesy of Ozempic and other weight loss “wonder drugs”. The stock's strength over the last fortnight is encouraging, but we aren’t tempted to cut this position even after it bounced ~38% - but never say never!

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