Up 37% from their low: Can ResMed shares keep rising?

ResMed Inc (ASX: RMD) shares are pushing higher again on Friday.

In afternoon trade, the sleep disorder treatment company’s shares are up 0.5% to $28.97.

This means that its shares now up 37% since hitting a 52-week low of $21.14 back in late September.

To put that in context, if you had invested $20,000 in ResMed shares at its low, your investment would now be worth $27,408.

That’s a return on investment of almost $7,500 in less than six months.

Investors may now be wondering if it is too late to buy the company’s shares. So, let’s find out.

Is it too late to buy ResMed shares?

The good news is that you’re not too late to the ResMed party according to a number of analysts.

For example, Citi has a buy rating and $34.00 price target on the company’s shares. This implies potential upside of 17% for investors from current levels.

Citi believes that the company is well-positioned to benefit from the delayed return from its main rival in the key sleep treatment market.

Don’t worry about Ozempic

Over at Ord Minnett, its analysts are even more bullish with their accumulate rating and $34.00 price target. This suggests that the ResMed’s shares could rise almost 35% over the next 12 months.

Its analysts aren’t concerned above the emergence of weight loss wonder drugs like Ozempic and see minimal impact on sleep treatment demand from them over the medium term.

A best idea

Finally, Morgans has an add rating and $32.82 price target, which would mean a return of 13% for investors.

Its analysts are so positive they have the company on their best ideas list again in March. The broker commented:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

The post Up 37% from their low: Can ResMed shares keep rising? appeared first on The Motley Fool Australia.

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