ResMed (RMD) Stock Forecast & Price Target

ResMed is positioned favorably in a structurally growing market driven by an increase in sleep apnea diagnoses, an aging population, and rising obesity rates, which supports robust revenue growth. The company has demonstrated strong financial discipline, returning capital to shareholders through a rising dividend and an aggressive share repurchase strategy, while simultaneously investing in business expansion projected to yield high single-digit revenue growth. Additionally, significant year-over-year growth in key markets, such as a 12% increase in masks and other revenue in the U.S., Canada, and LATAM, reinforces ResMed's positive financial trajectory.

ResMed is currently facing significant challenges that could negatively impact its sales, particularly due to the anticipated disruption in Positive Airway Pressure (PAP) volumes attributed to the increasing use of GLP-1 drugs for the treatment of obesity-related sleep apnea. Despite the company’s strong market execution and its proactive approach to digital health innovations, concerns persist regarding the growth trajectory of its mask and device revenue in light of changing treatment paradigms. Additionally, potential decreases in demand for traditional respiratory devices could hinder overall financial performance, presenting a concerning outlook for investors.