By Sam Boughedda
Investing.com — Shares of California-based medical device company ResMed Inc (NYSE:RMD) bumped up 0.4% after upgrades by analysts at BofA and JP Morgan on Monday.
BofA analyst Lyanne Harrison upgraded ResMed to neutral from underperform, raising the price target to $250 from $229.
Harrison said the firm upgraded the stock due to valuation. "RMD stock has retreated to $235/shr, and is now 20% below its Sep21 peak," said the analyst.
"The likelihood of extended chip shortage prevents us from having a more positive view. Longer term, we expect RMD's recent market share gains to unwind as Philips (PHIA) supply returns," she added.
Koninklijke Philips NV ADR (NYSE:PHG), which moved from consumer products to healthcare, has recently been hit by chip shortages and a product recall.
Meanwhile, JPMorgan (NYSE:JPM) analyst David Low upgraded ResMed to overweight from neutral, also increasing the price target to $270 from $260. Low said 2022 is "a year of opportunity" for ResMed and expects the company to take advantage of competitor Philip's recall.
Also acknowledging that Philips will recover, the JPM analyst said ResMed has "both the product range and sales force to ensure it holds onto material share gains."