RMD - ResMed: Premium Multiple Needs A Correction As Outlook Turns Gloomy
Investment Thesis
Covid-19 has fueled ventilator demand for ResMed Inc. (RMD), enabling the company to achieve a peak in revenue growth and margins. As the new therapeutics improve patient management, the sales bump will tail off. Though sleep clinics are reopening, the operations will fail to reach the pre-pandemic levels as virus fears persist. The potential of the core market remains largely intact, but the lack of digital focus in overseas markets will drag the near-term gains as the pandemic drives the home-based care.
The sales growth in July has dropped to low-single