The market may be sinking lower today, but that hasn’t stopped the ResMed Inc. (ASX: RMD) share price from continuing its impressive run.
In afternoon trade the medical device company’s shares are up around 0.5% to $15.23.
This small gain means that ResMed’s shares have stretched their year to date return to almost 41%.
Is it too late to invest?
I don’t believe it is if you are prepared to make a buy and hold investment.
I was very impressed with the company’s performance in the September quarter, which has traditionally been its weakest quarter.
Revenue for the quarter grew by 12% over the prior corresponding period to US$588.3 million and, thanks to the company’s operating leverage continuing to impress, income from operations rose 28% to US$144.1 million.
Management also advised that its growth strategy is being implemented successfully, putting it on target to achieve its long-term goal of changing 20 million lives by 2020.
All in all, I believe this has positioned the company to continue its above-average earnings growth for the foreseeable future, potentially making it a great investment option today.
One broker that agrees is Credit Suisse. A note out of the investment bank today reveals that it has retained its outperform rating and lifted the price target on ResMed’s shares to $16.10 following the acquisition of Propeller Health for US$225 million.
Credit Suisse is pleased that the acquisition provides a data platform for chronic obstructive pulmonary disease, which is something that had been lacking from its portfolio in the past. Another positive is that the broker also expects the acquisition to broaden its customer base.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.