ResMed Likely to Start Raising Prices in December Quarter

0501 GMT - ResMed is likely to counter September-quarter gross margin contraction by pushing through price increases over the remainder of its 2027 fiscal year, David L. Bailey of Morgan Stanley says. The analyst thinks that comments by the CPAP maker's management support his previously stated view that higher component costs will act as a headwind to margin expansion. He tells clients in a note that ResMed will likely raise prices after its fiscal first quarter, to meet its guidance for incremental gross margin expansion. MS keeps an equal-weight rating on ResMed's U.S.-listed stock and trims the target price by 0.9% to US$227.00. The stock last closed at US$211.94. ResMed's ASX-listed shares are up 4.0% at 30.02 Australian dollars.