UBS has reaffirmed its Buy rating on ResMed (NYSE:RMD), setting a price objective of $345.00, according to its latest analyst briefing. Currently, ResMed shares trade at approximately $261.13, indicating a compelling upside potential of roughly 32% relative to UBS’s target. With the company’s earnings announcement scheduled in one week, data from InvestingPro indicates a price-to-earnings ratio of 26.7 for ResMed.
UBS’s recent channel verifications reveal a supportive operating environment within the United States, where ResMed continues to secure its device market share. The firm's findings highlight that resupply volumes in the U.S. market remain robust, supporting stable domestic performance for the supplier of sleep and respiratory care equipment.
Looking internationally, UBS projects a turnaround in ResMed’s overseas sales growth. Following a relatively subdued first quarter, the analyst expects stronger underlying sales internationally, with a declining U.S. dollar anticipated to elevate reported figures to double-digit growth levels.
UBS forecasts consolidated group sales growth around 1.5%, surpassing prevailing market consensus. This forecast is primarily driven by the firm’s expectation of double-digit growth outside the United States, which underpins its more optimistic sales projections.
Complementing UBS’s outlook, ResMed recently announced robust financial results for the fourth quarter of 2025, generating revenues of $1.35 billion, above the anticipated $1.33 billion. Despite the positive earnings surprise, ResMed's stock experienced a slight pullback during pre-market trading.
Analyst sentiment beyond UBS varies. Stifel lowered its price target to $260 and maintained a Hold rating, citing potential competitive pressures related to Philips’s return to the market. Baird downgraded ResMed to Neutral from Outperform, adjusting its price target to $275 due to decelerating growth concerns. In contrast, UBS raised its price target to $345 while retaining a Buy rating, noting diminished worries over competitive bidding processes.
UBS also emphasized a notable price-to-earnings discount, likely reflecting market unease about prospective reductions in continuous positive airway pressure (CPAP) device usage stemming from the proliferation of GLP-1 weight loss drugs.
These contrasting analyst perspectives illustrate an intricate valuation landscape for ResMed, where optimism about market share and valuation discounts is tempered by competitive and pharmaceutical influences.