ResMed (RMD) Valuation Check After Goldman Sachs Drops Stock From APAC Conviction List

ResMed (RMD) just dropped off Goldman Sachs’ APAC Conviction List, a move that often nudges investor sentiment even if it does not change the underlying business story overnight.

See our latest analysis for ResMed.

That shift in endorsement lands at an interesting moment, with ResMed’s share price at $251.51 and a year to date share price return just over 10%, while its 1 year total shareholder return of about 6% suggests momentum has cooled from earlier highs but not reversed.

If this sort of sentiment change has you rethinking your watchlist, it could be a good time to explore other healthcare names using our curated healthcare stocks.

With earnings still growing, a modest intrinsic discount and analysts seeing double digit upside to their targets, investors now face a familiar dilemma: is this a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 14.8% Undervalued

With the most followed narrative putting fair value above the recent 251.51 close, the gap between price and projected fundamentals is hard to ignore.

Optimization initiatives in procurement, manufacturing, and logistics along with the build out of the U.S. manufacturing footprint are structurally improving gross margins. When combined with operating leverage from global scale, these factors are expected to boost overall earnings and free cash flow.

Read the complete narrative.

Curious what kind of revenue runway and profit expansion would justify that richer valuation multiple, despite slower headline growth expectations? The full narrative spells out the bold assumptions and timing behind those targets. Read it to see how the numbers stack up against today’s price.

Result: Fair Value of $295.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower U.S. PAP demand and rising GLP-1 adoption could soften device growth and margins, challenging the optimistic valuation path.

Find out about the key risks to this ResMed narrative.

Build Your Own ResMed Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding ResMed.

Ready for your next investment move?

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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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