ResMed Inc. (NYSE: RMD) is drawing increased attention following a revised price target on the company’s US-listed shares from Morgan Stanley, signaling continued confidence in the medical device company’s growth prospects. The updated target comes ahead of the company’s fiscal Q1 earnings report, adding to a complex mix of positive earnings, concerns over GLP-1 medications, and insider trading activity.
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ResMed Price Targets
The stock is currently trading at $268.22, down $3.13 (0.01%) from the previous close as of Tuesday, October 21, 2025, at 16:15:00 PDT. While the current trading price reflects a modest decrease, the Morgan Stanley price target suggests potential upside.
Morgan Stanley increased its price target on ResMed to $304 from $298, maintaining an Overweight rating. The firm’s Q1 revenue forecast of $1.33 billion is slightly below the Visible Alpha consensus. This adjustment follows a strong Q4 fiscal 2025 earnings report, where ResMed reported a 10% year-over-year revenue increase, reaching $1.35 billion. Adjusted earnings per share rose by 23% to $2.55, surpassing analyst expectations. The company also announced a 13% increase in its quarterly dividend.
A significant factor weighing on the stock has been the potential impact of GLP-1 medications on ResMed’s core business. CEO Mick Farrell addressed these concerns, stating the sleep apnea market remains substantial and underserved despite the rise of GLP-1s. While he acknowledged the potential impact of these medications on obesity rates, he emphasized the “vast and largely untapped opportunity” for ResMed, as reported by fool.com.au.
Adding another layer of complexity, CEO Mick Farrell has recently engaged in insider selling activity. While such activity can sometimes raise concerns, ResMed’s robust financial performance and growth trajectory suggest this may not necessarily indicate negative sentiment.
Prior to ResMed’s investor day on September 30, 2024, Needham maintained a Hold rating on the stock, citing a lack of major catalysts expected from the event. The analyst noted steady growth but did not foresee the investor day acting as a significant driver for ResMed’s stock price.
RMD Analyst Summary
Bull Case
- Morgan Stanley raised price target to $304, Overweight rating.
- Strong Q4 FY25 earnings beat expectations.
- CEO downplays GLP-1 impact, cites large market opportunity.
Bear Case
- Morgan Stanley’s Q1 revenue forecast is slightly below consensus.
- CEO insider selling raises concerns.
- GLP-1 medications could impact sleep apnea market.
Overall, ResMed presents a mixed picture for markets. Strong financial performance is tempered by concerns over GLP-1 medications and insider selling. The raised price target from Morgan Stanley provides a bullish signal, but markets will likely remain cautious until the company’s fiscal Q1 report and further clarification on the long-term impact of obesity treatments is available.
