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ResMed is in a strong position to win over more patients as other companies in the sleep apnea market struggle with product issues. Analysts noted that these competitor setbacks are making it easier for ResMed to grow its share of the market for breathing machines and masks.
This matters because ResMed already has a large network of connected devices that make it hard for customers to switch once they start. As the company brings in more users from its rivals, it can sell them more high-margin masks and software services over the long term.
Source: Barrons
RBC Capital set its price target for the stock at $262. This is higher than the $243 average target from other analysts who follow the company. A price target is what an analyst thinks a stock will be worth in the future. While the stock has faced questions about how new weight-loss drugs might affect the sleep apnea market, this higher target suggests a belief that ResMed can continue to grow its business of selling breathing machines and masks.
Source: RBC Capital
KeyBanc raised its target from $255 to $267, suggesting the stock has room to rise about 15 percent from its current level. This move reflects confidence in the company's ability to grow even as new weight-loss drugs change how people think about sleep apnea treatment. Other analysts have been more cautious lately, with the average target across all firms sitting lower at about $240. This gap shows that while some see the company's software and mask sales as a steady engine, others are still weighing how much those new drugs might shrink the total number of patients who need breathing machines.
Source: KeyBanc
Redburn Partners set its price target for the company at $230. This is just below where the stock currently trades and slightly lower than the average target of $239 across all firms that follow the company. While a new target from a single firm is routine, it reflects the broader wait-and-see approach many analysts are taking. The main question for the business remains whether weight-loss drugs will reduce the number of people who need sleep apnea machines or if they will simply bring more undiagnosed patients into the system.
Source: Redburn Partners
ResMed reported earnings of $2.95 per share, which was higher than the $2.89 analysts expected. Revenue grew 9 percent to about $1.5 billion for the quarter. The company also improved its gross margin, which is the percentage of sales left after paying for the direct costs of making its breathing machines and masks.
However, the stock dropped about 6 percent because the company's sales forecast for 2027 came in lower than expected. ResMed is dealing with higher costs and has stopped selling certain ventilators, which is weighing on its outlook. For long-term owners, the core business of selling sleep apnea masks remains healthy, but the company has to work through these specific manufacturing and sales hurdles over the next year.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has built a reliable habit of clearing their own targets by a few cents every quarter. It shows they have a firm grip on their costs and a very predictable business model.
| Expectation | |
|---|---|
| EPS | $2.68 |
| Revenue | $1.39B |