Beyond The Numbers: 6 Analysts Discuss ResMed Stock

Analysts' ratings for ResMed RMD over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for ResMed, revealing an average target of $222.33, a high estimate of $238.00, and a low estimate of $200.00. Surpassing the previous average price target of $215.67, the current average has increased by 3.09%.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of ResMed by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to ResMed. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of ResMed compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for ResMed's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into ResMed's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on ResMed analyst ratings.

Discovering ResMed: A Closer Look

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: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests 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 7.17% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 25.1%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): ResMed's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.6% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): ResMed's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.38%, the company showcases efficient use of assets and strong financial health.

Debt Management: ResMed's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.25.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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