The Bull Case For ResMed (RMD) Could Change Following FDA-Cleared AI Smart Comfort CPAP Feature

• ResMed recently received U.S. FDA clearance for its AI-enabled Smart Comfort feature, which uses de-identified sleep data to personalize CPAP comfort settings for new AirSense 11 users via the myAir app.
• This marks one of the earliest FDA-cleared uses of AI to individualize CPAP comfort, aiming to improve long-term adherence for millions of U.S. obstructive sleep apnea patients while easing clinicians’ setup workload.
• Next, we’ll explore how FDA-cleared AI personalization through Smart Comfort may influence ResMed’s digital health-focused investment narrative.

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ResMed Investment Narrative Recap

To own ResMed, you need to believe in long-term demand for sleep and respiratory care and in the company’s shift toward data-driven, cloud-connected therapy. FDA clearance of Smart Comfort fits this digital health story, but it does not materially change near term catalysts or the key risk that pricing and reimbursement pressure, particularly from any renewed CMS competitive bidding, could weigh on growth and margins.

The upcoming J.P. Morgan Healthcare Conference appearance by ResMed’s CEO and CMO looks especially relevant in light of Smart Comfort, as it gives management a high profile forum to frame its AI and digital health roadmap for investors. How convincingly they articulate this transition, while addressing reimbursement and competitive threats, may influence how the market weighs the stock’s current valuation and recent analyst target cuts.

However, investors should also be aware that potential changes to U.S. reimbursement rules could...

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

ResMed’s narrative projects $6.4 billion revenue and $1.9 billion earnings by 2028. This requires 7.8% yearly revenue growth and about a $0.5 billion earnings increase from $1.4 billion today.

Uncover how ResMed's forecasts yield a $295.13 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly US$194 to US$295 per share, underscoring how far apart individual views can be. As you weigh these opinions against ResMed’s AI push with Smart Comfort and ongoing reimbursement and competitive risks, it is worth exploring several perspectives before forming your own view.

Explore 7 other fair value estimates on ResMed - why the stock might be worth 21% 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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