Are we getting an opportunity now to buy ResMed?
The share price of ResMed (RMD) has shed almost 10 per cent since the start of August. It’s now trading on a P/E of ~20x, compared to ~24x around the time of their fiscal year result. There are however some concerns in the market about an expected impact on gross margins from pricing pressure from its US customers. There was little gross margin growth in FY16, and this, along with new products/positive testing results seem to be the key catalysts for the stock – …