As previously reported, Needham upgraded ResMed (RMD) to Buy from Hold with an $180 price target, noting that shares are down 31% since the start of August. Concerns about the potential for GLP-1 obesity drugs to reduce demand for ResMed’s sleep therapy devices and added pressure coming from Philips’ (PHG) possible re-entry into the flow generator market are now priced in given the pullback, the analyst argues. Accounting for both potential headwinds, the firm estimates that ResMed can sustain 5%-7% revenue growth and double-digit EPS growth for the next few years, the analyst tells investors.
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