RMD: MatrixCare sold for a cheap price, but not material to group outlook. Retain OP

Research evidence excerpt

RMD: MatrixCare sold for a cheap price, but not material to group outlook. Retain OP

Royal Bank of Canada, Sydney Branch

Craig Wong-Pan (Analyst)

+61 2 9033 3189, craig.wong-pan@rbccm.com

Taj Wesson, CFA (Associate)

+61 2 9033 3019, taj.wesson@rbccm.com

July 8, 2026 Outperform

NYSE: RMD; USD 219.75; ASX: RMD ResMed Inc. Price Target USD 276.00 ↓ 321.00RESEARCH MatrixCare sold for a cheap price, but not material Scenario Analysis*

to group outlook. Retain OP Downside Current Price Upside

Our view: RMD has announced the sale of MatrixCare for $490m, which we Scenario Price Target Scenario

estimate has been sold at a FY26 EV/EBITDA multiple of 8.4x. The sale is not 121.00 219.75 276.00 350.00

surprising given the MatrixCare business was detracting from the overall 44% 27% 60%

growth of the RCS portfolio, however the transaction multiple appears to *Implied Total Returns

be below our expectations of a low double-digit to mid-teens multiple. Key Statistics

Shares O/S (MM): 143.9 Market Cap (MM): 31,616EQUITY While we believe MatrixCare has been sold at a low price, it is not material Dividend: 2.42 Yield: 1.1%

to RMD's outlook and we retain our Outperform rating with a revised PT Avg. Daily Volume: 1,661,423

of $276 (prev $321).

RBC Estimates

Key points: FY Jun 2025A 2026E 2027E 2028E

Revenue 5,146.3 5,652.4 5,921.7 6,026.5 Transaction overview. The company has announced it will sell its Prev. 6,087.0 6,258.5

MatrixCare business, which includes Healthcare First, Citus and home EPS, Adj Diluted 9.66 11.21 12.01 12.56

health and hospice solutions, to Frazier Healthcare Partners for cash Prev. 11.20 11.97 12.27

of $490m. RMD will retain the Brightree and MEDIFOX Dan software P/AEPS 22.7x 19.6x 18.3x 17.5x

businesses. The transaction is expected to close in 1Q27.