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ResMed (RMD) is in focus after announcing a collaboration with Oura that connects Oura Ring users in the US to ResMed’s sleep education tools, assessments, and potential care pathways for obstructive sleep apnea
The collaboration with Oura lands at a time when momentum in ResMed’s share price has cooled, with the stock down about 19.8% on a 90-day share price return and its 1-year total shareholder return down around 15.5%, even after a recent 1-week share price gain of roughly 2%
If this sleep health partnership has you thinking about where connected care could head next, it may be worth scanning for other healthcare AI opportunities using the 29 healthcare AI stocks
With ResMed’s share price under pressure over the past year but trading at roughly a 30% discount to analyst price targets and intrinsic estimates, you have to ask: is this a reset opportunity, or is the market already pricing in future growth?
ResMed’s most followed narrative pegs fair value at $288.21, well above the last close at $207.78, which puts the recent share price pullback in a different light
Acceleration in adoption of home-based, cloud-connected therapy solutions and digital health platforms (including software like Brightree and AirView) enhances recurring high-margin revenue streams and increases both user retention and net profit margins over time. Ongoing innovation in product development, including new releases of CPAP devices, mask interfaces, and integration of AI-driven features, strengthens ResMed’s competitive differentiation and supports premium pricing power, driving both revenue and margin expansion.
Curious what kind of earnings path and margin profile would justify that higher fair value, and what future P/E multiple underpins it? The narrative lays out a detailed blueprint built on projected revenue growth, profitability and a specific discount rate, plus the level of disagreement between bullish and cautious analysts
Result: Fair Value of $288.21 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts
However, that upside case also leans on assumptions that could be challenged if reimbursement pressures tighten in key markets, or if alternative sleep apnea treatments slow demand for ResMed’s devices
