Piper Jaffray Maintains Overweight On ResMed Inc. (RMD)

Piper Jaffray is maintaining its Overweight rating and $38 price target on shares of ResMed Inc. RMD. In a note to clients, Piper Jaffray writes, "We attended the Spring Medtrade meeting, where ResMed showcased the recently introduced S9 VPAP bilevel platform as well as the Quattro FX and Mirage FX masks. As a reminder, increased competition from Philips/Respironics in the bilevel flow generator category hurt ResMed's 2Q11 domestic flow generator performance (+2% yoy) and given the timing of the S9 VPAP introduction we are expecting headwinds to continue in 3Q11 (+3% yoy), but steady traction in coming quarters as the S9 VPAP and easier comps benefit the category. Management provided a favorable update, with recent product introductions, increasing traction around home sleep testing and ongoing ROW strength all described as positives. The Spring Medtrade meeting was well attended (attendance +5%-10% yoy) and competitive product introductions were minimal (Philips/Respironics introduced a new nasal pillows mask). We maintain our Overweight rating and $38 price target on RMD shares." Shares of RMD gained 45 cents yesterday to close at $32.20, a gain of 1.4%.