KeyBanc reiterates Overweight rating on ResMed stock, maintains $298 target

Investing.com - KeyBanc has reiterated its Overweight rating and $298.00 price target on ResMed (NYSE:RMD), currently trading at $272.60, following meetings with the company’s CEO Mick Farrell. The company, with a market capitalization of nearly $40 billion, has demonstrated strong financial performance with a 9.84% revenue growth over the last twelve months.

The investment firm expressed comfort with ResMed’s current financial trajectory despite what it described as "some perceived tension points" in the market. According to InvestingPro data, the company maintains a "GREAT" financial health score, with six analysts recently revising their earnings estimates upward for the upcoming period.

KeyBanc noted that ResMed’s management appeared confident in sustained outperformance versus long-term market expectations, discussing key drivers that support recent strength in revenue and margin trends.

The firm also highlighted that ResMed is taking proactive measures to capture tailwinds from new sources of demand generation, potentially expanding its market opportunities.

According to KeyBanc, CEO Farrell did not express significant concern about potential headwinds from Philips’ return to the US market or competitive bidding, factors that some investors may have viewed as risks to ResMed’s business outlook.

In other recent news, ResMed Inc . reported its fourth-quarter earnings for fiscal year 2025, surpassing earnings per share (EPS) expectations but falling short on revenue forecasts. The company achieved an EPS of $2.55, exceeding the forecast of $2.48, while actual revenue reached $1.3 billion, slightly below the expected $1.33 billion. Despite a 23% increase in non-GAAP diluted EPS and a 10% rise in group revenue, these results were not enough to meet all market expectations. UBS has reiterated its Buy rating and $325.00 price target on ResMed following an analysis of GLP-1 medication usage among sleep apnea patients. UBS’s survey revealed that approximately 15% of obstructive sleep apnea users are currently taking GLP-1 medication. The firm’s continued Buy rating suggests confidence in ResMed’s long-term prospects despite the mixed earnings results. These developments provide important insights into ResMed’s current market position and future outlook.

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