ResMed (RMD) Stock Forecast & Price Target

ResMed is positioned for sustained growth due to an increasing market demand influenced by a rise in sleep apnea diagnoses, an aging population, and higher obesity rates. The company is actively returning cash to shareholders through dividend increases and a more aggressive share repurchase strategy, while also strategically boosting investments in its business operations. Furthermore, a notable uptick in revenue, specifically a 12% year-over-year increase in masks and other revenue from its key North American markets, underscores ResMed’s robust performance outlook.

ResMed's stock outlook is negatively impacted by the anticipated medium-term disruption to positive airway pressure (PAP) volumes due to the rising popularity of GLP-1 drugs and expanded obstructive sleep apnea (OSA) indications. Despite the company’s ability to outgrow the market, there are significant concerns that this disruption could adversely affect future growth in both mask and device sales. The reliance on a strong market presence in the Americas, alongside increasing competitive pressures from alternative treatments, further complicates ResMed's financial trajectory.