Analyst Upgrades Resmed Price Target to $224, Maintains Buy Rating Amidst Market Opportunities and OSA Trial Developments

Needham analyst Michael Matson reiterated a Buy rating on Resmed (RMD – Research Report) today and set a price target of $224.00.

Michael Matson has given his Buy rating due to a combination of factors concerning Resmed’s market position and the potential impact of clinical trials on their business. His analysis indicates that Resmed could face a slight revenue growth headwind from GLP-1 therapies through 2027; however, this is a modest increase from previous estimates. Matson anticipates that the SURMOUNT-OSA trial, conducted by Eli Lilly, may result in a significant portion of patients achieving remission from obstructive sleep apnea (OSA), which is central to Resmed’s interests. He projects that this could be around 50-60%, which is somewhat less optimistic than the figures used in the GLP-1 analysis but still presents a promising outlook for the company.
Furthermore, Matson has adjusted Resmed’s price target upward, from $215 to $224, which reflects an increase based on the expansion of peer multiples. This suggests that the market conditions and comparative valuations are favorable, reinforcing his positive stance on Resmed’s stock. The adjustment in the revenue growth headwind and the raised price target, despite the anticipated competition, underscore Matson’s confidence in Resmed’s resilience and long-term growth potential. His Buy rating encapsulates these details, signaling his belief in the company’s ability to navigate the challenges and capitalize on market opportunities.

Matson covers the Healthcare sector, focusing on stocks such as Masimo, Atricure, and Hologic. According to TipRanks, Matson has an average return of -2.5% and a 45.27% success rate on recommended stocks.

In another report released on March 27, Mizuho Securities also maintained a Buy rating on the stock with a $215.00 price target.

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Resmed (RMD) Company Description:

Founded in 1989, California-based ResMed, Inc. is a medical equipment company. The company is engaged in the development, manufacturing, distribution, and marketing of medical equipment and software solutions. The company operates through two segments: Sleep and Respiratory Care, and SaaS (Software as a Service).