: ResMed shares can overcome obesity-drug craze, analysts say

Shares of ResMed Inc. RMD, which have been pounded in recent weeks by concerns that the obesity-drug craze could hurt demand for the company’s sleep therapy devices, are poised for a turnaround, according to Needham analysts. Although GLP-1 drugs, such as Novo Nordisk’s NVO Ozempic and Wegovy, may cause some patients to stop using CPAP machines as their sleep apnea becomes less severe, “these impacts are likely to be small,” the analysts wrote in a note Wednesday, saying that ResMed can sustain 5% to 7% revenue growth and double-digit per-share earnings growth for the next few years. The analysts raised their rating on ResMed shares to buy, from hold, and set a $180 price target for the stock. ResMed shares gained 1% premarket on Wednesday and have dropped 26% in the year to date, while the S&P 500 SPX has gained 17%.

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