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Time to top up on ResMed (RMD)?

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Question asked 30/08/2025

Time to top up on ResMed (RMD)?

Hi MM team, I guess you are all exhausted after a volatile earnings season. ResMed shares had rallied firmly into the release of Q4 financials which proved positive. Gross margin lifted 230bps y/y to 61.4%, outperforming on the back of operational efficiencies. Management sees further margin expansion for FY26. The share buyback target for FY26 was doubled. I can see many analysts lifted their price targets, yet the share price for RMD started to go down following reporting. I am a current shareholder, and as the analysts, I'm positive about ResMed. Do you share that positivity and see this as an opportunity to top up? Looking at the price action on Friday morning (29 August), I wonder if RMD could fall bellow $42. Thanks, Angela PS: In the forecast section for RMD in the MM portal, there is no stock report. I would appreciate if you could fix that. Thanks!

Answer

Hi Angela,

RMD is a quality company which has continued to perform stoically both post the Ozempic panic and Liberation Day. We agree with your thinking in terms of looking where to buy as opposed to where to sell, especially with Sleep Apnea set to affect nearly 77 million US adults by 2050, providing plenty of room for growth.

As you say the stock has fallen since they reported this week although not as bad as CSL! We believe they suffered in a diluted fashion to CSL with investors “long and comfortable” into the result leaving air pockets into any selling. We can see RMD consolidating around $42 after doubling from its 2023 but it’s still fairly cheap compared to the market trading marginally above its average 2-year valuation.

We regard RMD as an accumulate in the $42 area following its solid result.

NB, we have referred the RMD “stock report” over to our tech/Refinitiv, sorry for the inconvenience.

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ResMed Inc (RMD)

LAST UPDATED 29/08/2025 13:20

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