UBS maintains ResMed stock Buy rating, $285 target

On Tuesday, UBS analyst Marcus Curley confirmed a Buy rating for ResMed (NYSE:RMD) shares with a price target of $285.00. According to InvestingPro data, the stock is currently trading near its 52-week high of $263.05, with analyst targets ranging from $200 to $295. The company’s strong financial health score of GREAT and market capitalization of $36.26 billion reflect its solid market position. The endorsement follows an announcement from Apnimed, a private pharmaceutical company, regarding their successful Phase 3 clinical trial for a new obstructive sleep apnea (OSA) treatment.

The trial, named SynAIRgy, tested the efficacy of AD109, an oral medication designed to be taken once daily. AD109 is classified as an anti-apnic neuromuscular modulator and functions by enhancing muscle tone in the upper airway during sleep. The results indicated a mean change in the apnea-hypopnea index (AHI) of 56% from baseline. Notably, 51% of the participants showed a significant reduction in OSA severity, while 22% achieved complete control of the condition, which is defined as an AHI of fewer than 5 events per hour. This development comes as ResMed maintains strong financial performance, with revenue growth of 9.54% and a P/E ratio of 28.18.

Curley’s statement highlighted the drug’s potential impact, noting the impressive trial outcomes. The full data from the SynAIRgy trial is expected to be released later in the year. Based on the promising results, Apnimed plans to submit a New Drug Application for AD109 to the U.S. Food and Drug Administration (FDA) in early 2026.

ResMed’s stock rating and price target have been reaffirmed in light of these developments. The company’s focus on innovative treatments for sleep-related disorders and other respiratory conditions continues to draw positive attention from industry analysts.

Investors and stakeholders in ResMed are likely to keep a close watch on the upcoming detailed trial data and the subsequent FDA submission, as these milestones could further influence the company’s market position and stock performance. For deeper insights into ResMed’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 13 additional ProTips and detailed financial metrics in the Pro Research Report, helping investors make more informed decisions about this healthcare leader.

In other recent news, ResMed reported its third-quarter fiscal year 2025 earnings, revealing a revenue of $1.29 billion, marking a 9% year-over-year increase, and an earnings per share (EPS) of $2.37. While the revenue met expectations, the EPS slightly missed the consensus estimate of $2.39. Analysts have responded with varied adjustments to their price targets for ResMed. KeyBanc Capital Markets raised its price target to $274, citing strong performance in the Masks & Accessories segment and improved gross margins. RBC Capital Markets also increased its price target to $255, maintaining a Sector Perform rating, and noted the positive impact of tariff exemptions on ResMed’s financial health.

Conversely, Piper Sandler lowered its price target to $248, maintaining a Neutral rating, due to uncertainties about the underlying business despite solid quarterly results. Mizuho (NYSE:MFG) Securities reduced its target to $250 but kept an Outperform rating, highlighting ResMed’s strategic positioning regarding tariffs and its GLP-1 strategy. Stifel maintained its Hold rating with a $240 target, expressing concerns about potential challenges related to GLP-1. ResMed’s management provided a positive update on tariff exemptions, indicating minimal expected impacts, which is seen as a short-term relief for investors.

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