Citi has introduced a "downside 90-day catalyst watch" on ResMed Inc. (RMD, Financial), despite maintaining a Buy rating and setting a price target of A$44. The move comes as ResMed's growth in U.S. app downloads for the March quarter shows an increase of 4.1% year-over-year. This figure trails behind the consensus estimate of 7.2% growth for U.S. device sales in the third fiscal quarter.
ResMed's U.S. devices contribute significantly to its overall revenue, accounting for one-third of the company's total income. The lower-than-expected app download growth may indicate potential challenges in meeting sales forecasts, prompting Citi's cautious outlook.
Additionally, ResMed's share price tends to be sensitive to developments related to GLP-1s (glucagon-like peptide-1 receptor agonists). With the impending Phase 3 results for Orforglipron—a medication for type 2 diabetes—expected in the second quarter, Citi has placed the catalyst watch as a precautionary measure against potential negative market reactions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for ResMed Inc (RMD, Financial) is $265.10 with a high estimate of $295.00 and a low estimate of $195.00. The average target implies an upside of 25.91% from the current price of $210.55. More detailed estimate data can be found on the ResMed Inc (RMD) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, ResMed Inc's (RMD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ResMed Inc (RMD, Financial) in one year is $287.82, suggesting a upside of 36.7% from the current price of $210.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ResMed Inc (RMD) Summary page.
