Key Stats for ResMed Stock
- Price change for ResMed stock in Last 1 Year: -16%
- $RMD Stock Price as of Sep. 15: $229
- 52-Week High: $285
- $RMD Stock Price Target: $246
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What Happened?
ResMed (RMD) stock rose 3% on Tuesday after RBC Capital Markets upgraded the medical device maker from Sector Perform to Outperform.
Analyst Craig Wong-Pan also raised his price target to $262 from $244, pointing to ResMed’s strong position as a market leader in obstructive sleep apnea, or OSA, devices and accessories.
Wong-Pan’s optimism largely rests on recent growth numbers.
He noted that ResMed’s Americas Sleep devices grew 8% year-over-year in Q4 of fiscal 2026, beating his own estimate for mid-single-digit industry growth.
Internationally, the numbers were even stronger, with Rest of World Sleep devices expanding 13% year-over-year in constant currency during that same quarter.
That kind of growth, well above general industry expectations, is a big part of why RBC sees ResMed stock as undervalued at its current price.
Looking further ahead, Wong-Pan projects ResMed can deliver high single-digit earnings-per-share growth over the next three years.
That forecast comes with an interesting assumption: RBC expects rival Philips Respironics to return to the U.S. market by fiscal 2028.
Even with that added competition on the horizon, RBC still sees room for ResMed stock to perform well, partly because the analyst pointed to ResMed’s increasing focus on capital management as a meaningful positive.
A broader market tailwind is also at play. RBC expects ResMed to keep benefiting from rising awareness of sleep apnea and increased penetration into what remains a largely underserved global market.
In other words, more people becoming aware they might have OSA, and more of those people actually getting diagnosed and treated, translates into more demand for ResMed’s devices over time.
Timing also worked in ResMed’s favor today.
The upgrade landed right around the same time the FDA issued a Class 1 recall, the most serious type, for React Health’s Luna G3 device, a competing sleep therapy product.
RBC expects this recall to give ResMed’s own sleep device business an extra boost, since patients and providers affected by the recall may turn to ResMed as an alternative.
That combination of a competitor stumbling and RBC’s bullish upgrade helped fuel today’s jump in ResMed stock.
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What the Market Is Telling Us About ResMed Stock
Today’s rally shows investors are responding well to the idea that ResMed’s growth engine, both in the U.S. and internationally, is running ahead of what analysts had built into their models.
RBCis willingness to raise its price target and upgrade the stock, even while assuming a major competitor re-enters the market in a couple of years, signals real confidence in ResMed’s underlying business strength.
The React Health recall adds an extra layer of near-term tailwind, since it removes a competing option from the market at a moment when demand for sleep apnea treatment keeps climbing.
Between strong device growth, the analyst’s long-term earnings outlook, and this competitive shake-up, it’s easy to see why ResMed stock is having a strong day.
Investors will likely keep watching how ResMed’s device growth trends hold up in future quarters, especially as the eventual Philips Respironics return gets closer.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
