Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Monday, Citi analysts increased the price target for ResMed stock to AUD45.00 from AUD44.00, maintaining a Buy rating. This adjustment follows ResMed’s third-quarter results, which aligned with expectations and prompted an upgrade in the projected earnings per share for fiscal years 2025 to 2027 by up to 4%.
The analysts highlighted ResMed’s reasonable valuation, with a projected price-to-earnings ratio of approximately 20x for fiscal year 2027, and a strong compound annual growth rate of 15% for earnings per share from fiscal year 2024 to 2027. They also noted the company’s significant free cash flow generation, exceeding $1.5 billion over the trailing twelve months, and a strong balance sheet with net cash.
Despite the potential impact of GLP-1 medications on ResMed’s business, analysts observed that these have not affected the company to date. ResMed anticipates increased promotional activity from its sponsors in the second half of calendar year 2025.
The future impact of GLP-1 medications and wearables on ResMed’s market share remains uncertain. Analysts continue to speculate whether these factors could outweigh any potential loss in CPAP device market share. Additionally, there is still no visibility on Philips’ return to the U.S. market, which is assumed to happen by July 1, 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.