Demystifying ResMed: Insights From 5 Analyst Reviews – ResMed (NYSE:RMD)

During the last three months, 5 analysts shared their evaluations of ResMed RMD, revealing diverse outlooks from bullish to bearish.

In the table below, you’ll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 1 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 2 1 0 0

Analysts have recently evaluated ResMed and provided 12-month price targets. The average target is $180.2, accompanied by a high estimate of $202.00 and a low estimate of $160.00. This current average represents a 18.83% decrease from the previous average price target of $222.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

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.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
David Low JP Morgan Raises Overweight $195.00 $160.00
Anthony Petrone Mizuho Lowers Buy $160.00 $180.00
Sean Laaman Morgan Stanley Announces Overweight $169.00
Suraj Kalia Oppenheimer Lowers Outperform $175.00 $275.00
Craig Wong-Pan RBC Capital Lowers Sector Perform $202.00 $273.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they ‘Maintain’, ‘Raise’, or ‘Lower’ their stance, it signifies their response to recent developments related to ResMed. This offers insight into analysts’ perspectives on the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from ‘Outperform’ to ‘Underperform’. These ratings reflect expectations for the relative performance of ResMed compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for ResMed’s future value. Comparing current and prior targets offers insights into analysts’ evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of ResMed’s market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on ResMed analyst ratings.

Get to Know ResMed Better

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.

Key Indicators: ResMed’s Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining ResMed’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.0% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: ResMed’s net margin is impressive, surpassing industry averages. With a net margin of 19.91%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): ResMed’s ROE excels beyond industry benchmarks, reaching 5.24%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): ResMed’s ROA stands out, surpassing industry averages. With an impressive ROA of 3.25%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: ResMed’s debt-to-equity ratio is below the industry average. With a ratio of 0.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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

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