-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our target to $180 from $234, 15.0x our FY 27 EPS estimate, a discount to its 10-year historical forward P/E average. We keep our FY 26 EPS view at $11.03 and our FY 27 view at $12.00. Despite beating Q3 earnings expectations, RMD faces several headwinds that concern us. During the Q3 analyst call, RMD acknowledged emerging component cost pressures and rising fuel costs stemming from Middle East geopolitical uncertainty, with the outgoing, long-tenured CFO Brett Sandercock signaling a challenging margin environment. Amid a complex operating environment, and the proposed $340M acquisition of Noctrix Health, which may carry some execution risks, RMD is going through an important leadership transition with the long-tenured CFO who held the role for 20 years, retiring effective May 4, and replaced by A. Bloomer, who was previously the CFO of Exact Sciences (recently acquired by Abbott). These factors, combined with broader macro uncertainties, may put pressure on RMD's near-term performance, in our view.