ResMed (RMD) provides products for the treatment of sleep-related breathing disorders, including sleep apnea, Chronic Obstructive Pulmonary Disease (COPD), and other respiratory conditions.
“The shares currently trade on a 1-year forward P/E multiple of approximately 30x, which is close to a 4-yearlow,” Michael said.
“Uncertainty about the potential impact on RMD’s margin and market share from the re-entry of Philips appear overdone.
RMD has come back to the long-term uptrend line and is starting to show some positive momentum once again.
“It has made a higher low in the past several days and this therefore looks like a buying opportunity. “There will be resistance near $34 and $35. “However, a break of $35 would be a very positive sign for RMD and that would then have us targeting $40.
“If RMD breaks under $30, then it is likely to find strong buying support back near $28,” Michael said.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
