ResMed upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst David Low upgraded ResMed to Overweight from Neutral with a price target of $170, down from $210. ResMed “has been through an extreme weight loss program of its own over the last three months” as investors grapple with the potential for effective weight loss drugs to undermine the value of its sleep apnea franchise, the analyst said. While the firm expects sleep clinicians to start prescribing obesity drugs for sleep apnea by FY25 and cut its medium-term forecasts, driving a lower price target, the analyst argues that the impact on ResMed should initially be modest and now sees value after the sharp price correction.