RMD 0.63% $38.11 resmed inc

From The Aus this a.m. ResMed has been dropped to Neutral from...

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    From The Aus this a.m.

    ResMed has been dropped to Neutral from Outperform at Credit Suisse, with a new price target of $8.75, after a medical trial failed to meet its target.
    “Assuming no future ASV (adaptive servo-ventilation) sales for this patient population, flow on effects to other indications (e.g. patients with CSA of any cause and known cardiovascular disease) and lower corresponding masks sales, we assume the total impact to be ~4% of group revenue. Incorporating these changes into our forecasts results in EPS downgrades of ~7% FY16 onwards.
 
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