The ResMed Inc. (ASX: RMD) share price has been a very strong performer in 2021.
Since the start of the year, the sleep treatment focused medical device company's shares have gained 35% to $37.12.
This leaves the ResMed share price trading within sight of its record high of $40.79.
Can the ResMed share price keep rising?
The good news is that it may not be too late to buy ResMed shares.
According to a recent note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on the company's shares to $44.00.
Based on the current ResMed share price, this implies potential upside of 18.5% over the next 12 months.
What did the broker say?
Credit Suisse was pleased with the company's investor day event this month.
It notes that ResMed is expecting to benefit from upwards of US$350 million in incremental sales in FY 2022 from the Philips product recall. The broker also suspects that sustained market share gains will be achieved because of the recall and feels the market is underestimating this.
Particularly given how management advised that it has seen a measurable elevation in mask sales arising from this issue.
In addition, ResMed has revealed plans to expand its patient reach with a new partnership with US pharmacy giant CVS Health. Credit Suisse suspects that these new channels will help sustain device growth rates above the industry average over the long term. This is because the CVS pharmacy network provides broad penetration across the community channel. Approximately 75% of the US population live within 5 miles of a CVS store.
All in all, it feels this makes the ResMed share price good value at the current level.
