ResMed sees ‘tidal wave’ from weight loss drugs, says William Blair

William Blair keeps an Outperform rating on ResMed after hosting meetings with management. The company believes there will be a “tidal wave” of new sleep apnea and CPAP patients stemming from “mega trends” like weight loss drugs and big tech, with the “starting gun” coming as early as calendar 2025, the analyst tells investors in a research note. The firm says that as the largest player in the market, ResMed should have an advantage in sales investments and reach, which should “ultimately lead to being the greatest beneficiary of this trend in devices. ResMed views sell-side consensus growth estimates as 50-150 basis points as too low with added margin expansion leading to double-digit earnings growth over the next 3-5 years, Blair adds. ResMed shares are up 6% to $240.09 in late morning trading.