Beyond The Numbers: 6 Analysts Discuss ResMed Stock

During the last three months, 6 analysts shared their evaluations of ResMed RMD, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $261.33, accompanied by a high estimate of $286.00 and a low estimate of $240.00. This upward trend is apparent, with the current average reflecting a 0.71% increase from the previous average price target of $259.50.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive ResMed is derived from recent analyst actions. The following is a detailed summary of 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ResMed compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of ResMed's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of ResMed's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on ResMed analyst ratings.

Unveiling the Story Behind ResMed

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.

Financial Insights: ResMed

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: ResMed's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 10.26%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the 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 26.88%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): ResMed's ROE excels beyond industry benchmarks, reaching 6.6%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): ResMed's ROA excels beyond industry benchmarks, reaching 4.8%. This signifies efficient management 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 0.16.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically 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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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