Morgan Stanley Overweight On Resmed Inc. (RMD)

Morgan Stanley has an Overweight rating and a $34.98 price target on shares of Resmed Inc. RMD, as it previews earnings. In a note to investors, Morgan Stanley writes, "RMD's lack of a bi-level device on the S9 platform leads to poor 2Q11 performance at only 1.9% growth in the US. Respironics has a unified platform for bi-level and APAP devices and has taken market share as a result. RMD's market share attrition related to the non- compliant OSA segment of the market where a bi-level device is required. The S9 bi-level was launched in early 4Q11. As a result, we believe RMD's 3Q11 US device numbers could be worse than anticipated." Shares of RMD closed at $33.49 yesterday, up 34 cents.