BUZZ - Citi raises its target price for ResMed's ASX-listed shares after updating forex and valuation data

October 15 - ** Citi expects ResMed (RMD.N, RMD.AX) to report first-quarter sales growth of 3.3%, with the 3% negative impact from missing Astral ventilator sales and the effect of the MatrixCare business divestiture already accounted for

** The broker stated that its revenue forecast is largely in line with market consensus, but its earnings per share estimate is about 2% below consensus due to slightly lower gross margin expectations and a higher tax rate

** The report noted that, while there is currently no evidence that competitor Philips PHG.AS is about to return to the US market, investors remain cautious because of this uncertainty

** "We still believe weight-loss drugs are a difficult-to-quantify positive factor," Citi said

** The broker has updated its foreign exchange assumptions, valuation base date, and peer price-to-earnings multiples

** Citi raised its target price for ResMed's Australia-listed shares to AUD 34, while maintaining its US-listed stock target price at USD 240

** As of the previous trading day's close, the company's shares listed on the Australian Securities Exchange have fallen more than 6% year-to-date

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