ResMed (RMD) Stock Forecast & Price Target

ResMed is positioned favorably in the growing market for respiratory care devices, driven by an increase in sleep apnea diagnoses and demographic trends such as aging populations and rising obesity rates. The company has shown strong financial performance, with U.S., Canada, and LATAM masks and other revenue increasing by 12% year-on-year, alongside a return of capital to shareholders through dividend increases and an aggressive share repurchase strategy. Furthermore, ResMed's commitment to investing in digital health solutions indicates a forward-looking approach to enhance its market presence and revenue growth, projected at a high single-digit percentage increase for FY26.

ResMed's potential growth may be undermined by the impact of GLP-1 medications on the treatment of obstructive sleep apnea (OSA), as indicated by findings from comprehensive surveys of sleep specialists. Although the company is currently outpacing market growth, concerns about the medium-term disruption to positive airway pressure (PAP) device volumes cast a shadow over its future revenue from masks and devices. In light of these factors, there is an expectation of adverse effects on growth metrics, necessitating a cautious outlook on ResMed's financial trajectory.