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ResMed price target raised to $224 from $215 at Needham

ResMed price target raised to $224 from $215 at Needham

Needham raised the firm’s price target on ResMed (RMD) to $224 from $215 and keeps a Buy rating on the shares. An analysis of bariatric surgery and obstructive sleep apnea trials showed that large body mass index reductions drove even larger apnea-hypopnea index, or AHI, reductions, and the firm expects somewhat lower weight loss and AHI reduction in Eli Lilly’s (LLY) SURMOUNT-OSA trial of tirzepatide, the analyst tells investors in a research note. Needham adds that it now expects a 1.0% headwind to ResMed’s revenue growth from GLP-1s through 2027 vs. 0.8% previously, though its higher price target is due to peer multiple expansion.

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