ResMed (RMD) Stock Forecast & Price Target

ResMed is expected to continue its strong performance and growth in the respiratory care market, supported by a growing demand for sleep apnea treatment and its leadership in the industry. The company's focus on digital health solutions and their potential to provide value to patients, medical advisors, and payers is a differentiating factor in the industry. Despite some headwinds and potential challenges, ResMed's strong financials, healthy balance sheet, and commitment to portfolio management and share repurchases position them well for future growth and potential margin expansion.

ResMed is facing challenges that may impact it's organic growth rate, as the recent acquisition of Astral is expected to contribute a headwind of ~130 bps. Additionally, GM and OM are expected to see modest improvements, but macro uncertainties and inflation could affect this positively. With FQ4 results coming in largely in-line with expectations, and EPS guidance for FY27 above estimates ($12.00-$12.25 vs. $11.82), RMD potentially has room for near-term upside. However, the reliance on acquisitions and digital health could lead to volatility and challenges in maintaining profitability in the long-term future.