Expert Outlook: ResMed Through The Eyes Of 9 Analysts

Across the recent three months, 9 analysts have shared their insights on ResMed RMD, expressing a variety of opinions spanning from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated ResMed and provided 12-month price targets. The average target is $203.22, accompanied by a high estimate of $227.00 and a low estimate of $180.00. This current average reflects an increase of 10.52% from the previous average price target of $183.88.

Investigating Analyst Ratings: An Elaborate Study

The standing of ResMed among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ResMed. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of ResMed compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of ResMed's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on ResMed analyst ratings.

Delving into ResMed's Background

ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.

ResMed: A Financial Overview

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining ResMed's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.48% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: ResMed's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.96%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): ResMed's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.78%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): ResMed's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.06% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.31.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.