The ResMed Inc (ASX: RMD) share price could be an attractive opportunity according to a fund manager from Tribeca.
For readers that haven't heard of ResMed before, it's a business that operates in the healthcare space.
ResMed says that it's "leading the way" in cloud-connected medical devices that transform care for people with sleep apnea, COPD (chronic obstructive pulmonary disease) and other chronic diseases. Its out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice.
What's been going on recently with ResMed shares?
The last two months have been pleasing for shareholders. The ResMed share price has gone up almost 20%. Today, the business goes ex-dividend for its quarterly dividend.
Investors seemingly liked what they saw in the company's recent result.
Its FY22 annual numbers showed that revenue increased by 12% to $3.6 billion. It also reported that income from operations increased 11% to $1 billion and non-GAAP net income went up by 9% to $850.8 million.
The ResMed CEO, Mick Farrell, explained a number of positives and developments for the company:
Our fourth quarter and full-year fiscal year 2022 results demonstrate strong growth and ResMed's market leadership. During the quarter, we saw continued adoption of our most advanced platform innovation to date, the 100% cloud-connectable AirSense 11. We launched this solution into several new countries in Europe while continuing to see strong sales in the US.
We also introduced our newest device to meet the needs of an industry crisis in PAP supply, the AirSense 10 card-to-cloud solution during the quarter. The card-to-cloud device was launched into the US and many other markets and is designed to work without an embedded communications module. This redesign allowed us to increase deliveries to customers and ultimately to get many more patients onto life-saving sleep apnea and respiratory care therapy. Both of these platforms, as well as our legacy, market-leading, 100% cloud-connected AirSense 10 device, will support solid growth throughout FY23.
Expert bullish on the future
Talking to Livewire, Jun Bei Liu from Tribeca Investment Partners said that she would buy ResMed shares, particularly as they have dipped. She's also interested due to the very bullish outlook over the next 12 months.
The fund manager is very positive on the healthcare sector because it's "very defensive and it offers structural growth". She thinks earnings won't be hurt by economic uncertainty and that positions it well in people's portfolios.
One of the main reasons for Jun Bei Liu's bullish outlook for the ResMed share price was due to what management said themselves on an earnings call. Livewire quoted her comments:
They talked about increasing production quarter on quarter and that's very strong. They're selling everything they can make and the more they can make, the more they can sell because Philips, their major competitor, is still out of the market. And they believe that Philips won't come back into the market for at least another 12 months. That is really good for ResMed. Add into the mix their strong pricing power and they can more than offset all the inflation that is coming through.
ResMed share price performance in 2022
Since the beginning of the calendar year, the ResMed share price has fallen by 6%, though it has made a big recovery in recent weeks.
