ResMed Inc. (ASX: RMD) shares are marginally lower at $21.48 today, despite the research desk at investment bank Goldman Sachs tipping them as a buy.
The analysts updated their numbers on the sleep therapy giant and reckon the shares have upside of around 11 per cent over the next 12 months. Goldman's is forecasting three-year compound sales and earnings per share growth of 9% and 12% respectively.
If delivered this would be reasonable performance for a business that has long-term growth potential thanks to its market-leading products and large unmet global addressable markets.
Goldman's cites the large markets, favourable pricing dynamics, and new product launches as among the factors influencing its favourable view.
The analysts' $24 price target is reached largely by using a multiple of 24.3x EBITDA to enterprise value over the next 12 months.
The analysts have also slapped a buy rating on CSL Limited (ASX: CSL), but are a 'sell' rating on Ramsay Healthcare Limited (ASX: RHC).
