Should Goldman’s Conviction List Exit and New Stock Plans Require Action From ResMed (RMD) Investors?

• ResMed recently saw Richard Sulpizio step down from its board and filed two employee stock ownership-related shelf registrations totaling about US$1.32 billion in common stock, while Goldman Sachs removed the company from its APAC Conviction List.
• Together, these moves highlight a mix of ordinary corporate housekeeping and a meaningful reassessment by a major broker that could reshape how investors view ResMed’s prospects.
• Next, we’ll explore how Goldman Sachs’ decision to drop ResMed from its APAC Conviction List may influence the company’s existing investment narrative.

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ResMed Investment Narrative Recap

To own ResMed, you generally need to believe in the long term demand for sleep and respiratory care solutions, as well as the company’s ability to defend its market position against new therapies and pricing pressure. Goldman Sachs removing ResMed from its APAC Conviction List may weigh on sentiment, but it does not appear to materially alter the key near term catalyst of execution in its core devices and software ecosystem, or the central risk of reimbursement and pricing pressure.

The most relevant recent announcement here is ResMed’s pair of ESOP related shelf registrations totaling about US$1,317.2 million in common stock, which could modestly influence how investors think about future share issuance and capital allocation. While the filings themselves are routine for many large companies, they sit alongside the evolving debate about growth, competition from alternative sleep apnea treatments and how ResMed balances investment, employee ownership, and shareholder returns.

But investors should also be aware of how renewed pressure on reimbursement and pricing could interact with...

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

ResMed's narrative projects $6.4 billion revenue and $1.9 billion earnings by 2028.

Uncover how ResMed's forecasts yield a $295.13 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range from US$193.80 to US$295.13, underlining how far apart individual views can be. You are weighing those opinions against real business risks, including the possibility that tighter reimbursement or pricing pressure could directly affect ResMed’s revenue growth and profitability over time.

Explore 7 other fair value estimates on ResMed - why the stock might be worth 23% less 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 4 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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