Piper Jaffray Reiterates Overweight On ResMed

Piper Jaffray is reiterating its Overweight rating and $37 price target on shares of ResMed Inc. RMD. In a note to clients, Piper Jaffray writes, "ResMed announced the acquisition of BiancaMed, a private, Northern Ireland based company offering non-contact sleep and breathing monitoring technology for use in the home. BiancaMed currently offers two products: BiancaBaby, a non-contact respiratory sensor for infants; and Sleepminder, a non-contact sleep and respiration sensor and software for adult sleep monitoring. The transaction has already closed and is expected to be ~$0.04 dilutive to F2012 EPS. Given the recent formation of the ResMed Ventures and Initiatives group and the company's significant cash balance ($671M as of 3/31/11), we anticipate additional tuck-in, sleep-focused acquisitions going forward. We reiterate our Overweight rating and $37 price target on RMD shares." Shares of RMD are up 6 cents to $31.09, a gain of 0.2%.