ResMed Inc.

This is our first report on ResMed, a leading medical equipment company that specializes in the treatment of sleep apnea and other respiratory disorders. The company delivered financial results in the last quarter with revenues below par but managed an earnings beat. It saw a decent sales growth in the Americas due to its ability to boost flow generator device manufacturing and delivery. Their sleep and respiratory care products continue to be in high demand across the world, and they are making steady progress working with their suppliers to raise their production to satisfy the needs of all consumers, especially patients. Globally, the demand for masks increased significantly, which is indicative of a post-COVID pandemic knowledge of the value and necessity of respiratory hygiene and respiratory health. ReSupply initiatives in the U.S. continued to fuel strong ongoing, sustained market mask growth. Mask sales surged throughout the world due to more new patient setups and connected device supply. Throughout the second quarter, customer adoption of their redesigned AirSense 10 card-to-cloud device remained high, especially in the US market. We initiate coverage on the stock of ResMed Inc. with a ‘Hold’ rating.