Piper Sandler Starts ResMed (RMD) at Neutral

Piper Sandler analyst Adam Maeder initiates coverage on ResMed (NYSE: RMD) with a Neutral rating and a price target of $252.00.

The analyst comments: "While we believe there’s a lot to like about the RMD story and execution has been rock-solid, shares have largely rebounded off the summer 2023 lows and we take a somewhat cautious lens on the impact that GLP-1s may have on the company’s device and mask businesses. We do acknowledge that this view deviates from the company’s initial analysis that shows GLP-1 users are more likely to start CPAP therapy and have higher resupply rates. We do agree with RMD that the emergence of GLP-1s could increase OSA awareness and diagnosis rates (~20% today) and that wearables represent a potential tailwind as well. Altogether, we are electing to take a wait-and-see approach with the stock to see if the company can continue to durably grow HSD and DDs on the top and bottom-line, respectively."

For an analyst ratings summary and ratings history on ResMed click here. For more ratings news on ResMed click here.

Shares of ResMed closed at $236.17 yesterday.

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