Citi‘s Most Read – Healthcare

Research evidence excerpt

Citi‘s Most Read – Healthcare

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Citi's Most Read - Healthcare

July 13 - July 19 20 Jul 2026 07:21:07 ET

ACMost Read Citi Global Research

As boundaries increasingly blur between conventional sectors, and as bottom-up +44-20-7500-1400

and top-down analysis converges, Citi Research offers a Super-Sector lens to help

you better understand and take advantage of widespread disruptive trends and

innovation, extending our peer analysis for greater breadth and depth. The

Healthcare Super-Sector consists of the Pharmaceuticals & Biotechnology,

Medical Services, Medical Supplies, Medical Technology, and Life Sciences

sectors. Please find below a collection of our most impactful recent research in the

Healthcare Global Super-Sector – we hope you find it thought-provoking.

Most Read

Resmed Inc (RMD.N, RMD.AX) - We think earnings growth now falls enough in

FY27 to give investors pause for thought. Downgrade to Neutral.

We downgrade Resmed from Buy to Neutral. The shares are up c.7% in July, but a

recently emerging problem with a component used in the Astral line of portable

ventilators means there will be a remediation program for machines built pre-

October 2024. The part required is scarce so making new machines will be

deprioritised for now. We estimate loss of USD220m sales and c.US100m of EBIT

for FY27, leading to forecast cuts of 4%/5% respectively. We see 16% FY26 EPS

growth but now see 4% in FY27 vs 9% prior. This puts Resmed among lower-

growth stocks in our coverage, and drops the PE we assign in our blended PE/DCF

valuation from 15x to 13x, given US peer multiples for comparable growth. Coupled

with a potential US OSA market return from competitor Philips that has always

been anchored to FY27, we think will see many stay on the sidelines for now.