Sleep disorder business RMD fell 3.4% on Thursday, making it the standout loser in the healthcare sector after founder Peter Farrell sold $500k worth of shares. Unlike many stories in recent weeks, RMD expects to benefit from Donald Trump’s trade tariffs and tax cuts if competitors making rival products in China and Mexico are slapped with additional duties when they import devices into the United States. Also, there were early signs that the Trump administration would be positive for medical technology companies as a whole, with tax cuts introduced in 2017 expected to be extended under the returned president.
- We haven’t changed our view towards RMD since its earnings numbers in mid-February; we like the stock ~$35, or 2-3% lower.
MM likes RMD in the $34.50-$35 area.
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