09:45 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $10 to $210, or 27.0x our FY 24 (Jun.) EPS estimate, a discount to RMD's three-year average forward P/E of 33.2x, but close to in line with peers, which are trading at an average forward P/E of 26.6x. We raise our FY 24 EPS estimate by $0.35 to $7.77 and FY 25's by $0.30 to $8.36. RMD posted FQ3 adj. EPS of $2.13 vs. $1.68, $0.22 above consensus, driven by a top-line beat of 2%. Revenue from the U.S., Canada, and Latin America rose 9% Y/Y during FQ3 and sales in Europe, Asia, and other markets were up 3% Y/Y, while Software-as-a-Service increased 8% Y/Y. The adj. gross margin in FQ3 expanded 240 basis points Y/Y to 58.5%, which was driven by reduced freight expense, favorable product mix, an increase in device average selling prices, and manufacturing cost improvements. We anticipate higher freight costs in FQ4 due to the disruption in shipping lanes in the Red Sea, which should contribute to a sequential contraction in the gross margin of about 50 basis points in FQ4.