Wish I had money to invest in ResMed or Respironics... :blink:

Resmed: Yawning For More
June 28 2005 - AIR

Those intrepid SB Citigroup analysts have been at it again, this time donning pyjamas, dressing gown and slippers, and firmly clutching teddy bears, in order to attend the Associated Professional Sleep Societies annual meeting in Denver.

Before nodding off, the analysts noted that consensus among industry players – manufacturers, homecare dealers and sleep labs – is for greater than 20% market growth in the short term. Medium to longer term fundamentals also look intact with no alternative therapies on the horizon.

Resmed (RMD) and Respironics continue to dominate the sleep market with about 80% combined market share. According to SB Citigroup, the market has seen new entrants but no one is gaining market share. Rather, everyone’s getting a piece of the action.

Growth in the market relates to growing awareness of Obstructive Sleep Apnea, its acknowledged relationship with cardiovascular disease, and its connection to the increasing incidence of obesity (now there’s a growth market).

Recent trading weakness in Resmed reflects over-sceptical market concerns about balance sheet issues, and these are only short term in nature, says Citigroup. The analysts rate Resmed a Buy.