ResMed: MatrixCare Divestiture Sharpens SaaS Growth Outlook, Supports Attractive Valuation and Reiterated Buy Rating
Complete. Here is the key summaryWilliam Blair analyst Brandon Vazquez reiterated a Buy rating on ResMed (RMD), citing the divestiture of MatrixCare as a catalyst for improved SaaS growth and an attractive valuation. The sale removes underperforming assets, expected to drive high-single-digit SaaS growth by fiscal 2027. Combined with planned buybacks and a ~16x EPS multiple, the risk-reward profile is favorable. Bank of America Securities also maintained a Buy rating with a $320 price target.
William Blair analyst Brandon Vazquez has reiterated their bullish stance on RMD stock, giving a Buy rating today.
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Brandon Vazquez has given his Buy rating due to a combination of factors tied to ResMed’s portfolio reshaping and valuation. The sale of MatrixCare removes a slower‑growing, underperforming asset that had weighed on investor confidence in the sustainability of ResMed’s growth, particularly within its SaaS operations, even though the transaction is modestly EPS‑dilutive near term.
At the same time, the divestiture is expected to quickly improve SaaS growth rates, as the remaining businesses in the segment have been expanding faster and should drive a return to high‑single‑digit growth in fiscal 2027. Together with planned capital returns via buybacks and a share price that implies a reasonable multiple of about 16x calendar EPS, Vazquez views the risk‑reward profile as attractive and therefore reiterates a positive stance on the stock.
According to TipRanks, Vazquez is an analyst with an average return of -3.2% and a 40.25% success rate. Vazquez covers the Healthcare sector, focusing on stocks such as Resmed, PROCEPT BioRobotics, and Edwards Lifesciences.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $320.00 price target.