What Happened?
Shares of medical device company ResMed (NYSE: RMD) jumped 3.7% in the afternoon session after it was added to Goldman Sachs' APAC Conviction List, signaling renewed confidence from the investment bank.
This addition reflects renewed optimism about the company's patient base growth and overall momentum, particularly with its fourth-quarter fiscal 2026 results expected in August. The positive sentiment was also part of a broader trend, as the healthcare sector has seen recent gains. Goldman Sachs' action is seen by investors as a strong endorsement of ResMed's long-term growth trajectory, despite potential headwinds in the sector.
The shares were trading at $209.27, up 4.1% from the previous close.
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What Is The Market Telling Us
ResMed’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock dropped 4.5% on the news that Morgan Stanley downgraded the stock to Equalweight from Overweight and lowered its price target.
The investment firm cut its price target on the shares to $230 from $286. The analyst cited several concerns, including limits to near-term profit margin growth and modest earnings expectations. The downgrade also reflected worries about competitor Philips potentially re-entering the U.S. market for PAP devices, which are used to treat sleep apnea.
Additionally, Morgan Stanley noted potential negative effects from the growing use of GLP-1 weight-loss drugs, which may reduce the need for sleep apnea treatments in some patients.
ResMed is down 14.5% since the beginning of the year, and at $209.27 per share, it is trading 28.8% below its 52-week high of $293.73 from August 2025. Investors who bought $1,000 worth of ResMed’s shares 5 years ago would now be looking at only $835.31.
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