Does US Security Probe of Device Imports Alter the Bull Case for ResMed (RMD)?

• Earlier this month, the U.S. Commerce Department initiated a national security investigation into medical device imports, including products from major manufacturers such as ResMed, raising the prospect of tariffs and new regulatory requirements for the industry.
• This development introduces ongoing uncertainty for companies with significant U.S. market presence and extensive global manufacturing, yet ResMed's recent launch of the NightOwl™ home sleep apnea test highlights a continued push to broaden patient access even amid tighter scrutiny.
• We'll explore how regulatory pressures and new product innovation may alter ResMed's outlook following the recent news event.

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ResMed Investment Narrative Recap

To believe in ResMed as a shareholder, you have to trust in persistently high global demand for sleep health solutions, strong recurring revenues, and resilience to regulatory shifts. The recent U.S. Commerce Department investigation into medical device imports brings potential near-term challenges, especially if tariffs or regulations arise, but it does not appear to materially alter the company’s most important catalyst, expanding patient access through innovation. The critical risk remains tightening U.S. reimbursement or regulatory headwinds impacting profits and margins.

Among the latest announcements, ResMed’s launch of the FDA-cleared NightOwl™ home sleep apnea test is directly relevant, aiming to accelerate adoption in an underdiagnosed market. Increased accessibility to home diagnosis tools could help offset some pressure from regulatory uncertainty, keeping growth prospects intact if reimbursement conditions remain favorable.

However, as global regulation tightens, investors should pay particular attention to how potential rule changes could quickly affect...

Read the full narrative on ResMed (it's free!)

ResMed's outlook anticipates $6.4 billion in revenue and $1.9 billion in earnings by 2028. This scenario is based on a 7.8% annual revenue growth rate and a $0.5 billion increase in earnings from the current level of $1.4 billion.

Uncover how ResMed's forecasts yield a $291.86 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community members see fair value for ResMed between US$179.72 and US$291.86, reflecting wide-ranging outlooks. With reimbursement and regulatory changes now a growing concern, you can see how opinions across the market may shift, take a look at multiple views to understand what could influence returns.

Explore 8 other fair value estimates on ResMed - why the stock might be worth as much as 6% more than the current price!

Build Your Own ResMed Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ResMed research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free ResMed research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ResMed's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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