Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - UBS has reiterated its Buy rating and $325.00 price target on ResMed (NYSE:RMD), representing a potential 19% upside from the current price of $272.95, following an analysis of GLP-1 medication usage among sleep apnea patients. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall score and has raised its dividend for 13 consecutive years.
UBS’s fourth Evidence Lab GLP-1 survey revealed that approximately 15% of obstructive sleep apnea (OSA) users are currently taking GLP-1 medication, according to industry feedback gathered by the firm. With ResMed generating over $5.1 billion in revenue and maintaining healthy profit margins near 60%, InvestingPro subscribers can access 12 additional key insights about the company’s performance and outlook.
The survey, which polled 500 current or past GLP-1 users in the United States, found that weight loss was the primary motivation for taking the medication, with OSA prevalence notably high at 35% among respondents.
Survey participants had an average weight of 240 pounds and an estimated body mass index (BMI) of 39, significantly higher than the U.S. adult average of approximately 30, along with associated comorbidities.
UBS characterized the overall effectiveness of GLP-1 medications on controlling weight, and consequently OSA, as "relatively underwhelming," noting smaller-than-expected weight loss during medication use and "material regain" after discontinuation.
In other recent news, ResMed Inc. reported its fourth-quarter earnings for the fiscal year 2025, delivering results that exceeded expectations in some areas while falling short in others. The company posted earnings per share (EPS) of $2.55, surpassing the anticipated $2.48. However, revenue came in at $1.3 billion, which was slightly below the forecasted $1.33 billion. Despite a 23% increase in non-GAAP diluted EPS and a 10% rise in group revenue, the financial results led to a decrease in ResMed’s stock in aftermarket trading. Analysts had expected higher revenue figures, which might have influenced the market’s reaction. These earnings reflect the company’s ongoing financial performance and are crucial for investors assessing the company’s financial health. No recent mergers or acquisitions have been reported, and there have been no significant analyst upgrades or downgrades disclosed.
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