The ResMed Inc (ASX: RMD) share price has started the week deep in the red.
At the time of writing, the sleep treatment focused medical device companyâs shares are down 7% to $31.25.
Why is the ResMed share price sinking?
On Friday, the ResMed share price rose 2% following the release of the companyâs quarterly update.
Unfortunately, US investors didnât respond anywhere near as positively, leading to the companyâs NYSE listed shares falling by approximately 3.5% on Friday night.
So, with each ResMed share equal to one-tenth of its NYSE shares, they have given back Friday’s gains and some more today to reflect this.
Is this a buying opportunity?
A number of brokers are likely to see the weakness in the ResMed share price as a buying opportunity.
For example, this morning Morgans has reiterated its add rating with an improved price target of $37.24. It was pleased with its stronger than expected second quarter performance. Morgans commented:
2Q was ahead of market expectations, with robust sales across all product lines, but with GM headwinds limiting robust operating leverage.
Elsewhere, Goldman Sachs has retained its buy rating with an improved price target of $38.00. The broker was also pleased with its performance and remains positive on its outlook. It said:
Steady improvements in diagnosis rates and supply chain could widen opportunity for share gains.
Finally, over at Citi, its analysts have held firm with their buy rating and lifted their price target to $39.00. Citi notes that industry conditions are improving and are favourable for ResMed. The broker commented:
The supply chain situation is improving for RMD and the competitive dynamic remains in its favour.
Based on the current ResMed share price, these price targets imply potential upside of 19% to 25% for investors over the next 12 months.
The post ResMed share price sinks 7%: Is this a buying opportunity? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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