Sleep Device Player ResMed's Potential Obstacles: Analyst Weighs Obesity Drugs & Philips' Re-Entry
Portfolio Pulse from Vandana Singh
Needham has upgraded ResMed Inc (RMD) from a Hold to Buy rating with a price target of $180. ResMed's shares are down 31% since August due to concerns about the potential for GLP-1 obesity drugs to reduce demand for ResMed's sleep therapy devices and Philips' (PHG) possible re-entry into the flow generator market. However, Needham believes that both impacts will likely be small and that ResMed can sustain 5-7% revenue growth above its large-cap peers.
September 06, 2023 | 6:39 pm
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POSITIVE IMPACT
ResMed's shares have been downgraded due to concerns about the impact of obesity drugs and Philips' re-entry into the market. However, Needham's upgrade and the potential for sustained revenue growth could positively impact the stock.
ResMed's stock has been negatively impacted by concerns about obesity drugs and competition. However, Needham's upgrade and the company's potential for sustained revenue growth could counteract these concerns and positively impact the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Philips' potential re-entry into the flow generator market could pose a threat to ResMed's growth. However, the impact is expected to be small.
Philips' potential re-entry into the flow generator market could pose a threat to ResMed's growth. However, Needham's analysis suggests that the impact will likely be small, which could limit the impact on Philips' stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50