The ResMed Inc (ASX: RMD) share price has started the week deep in the red.
At the time of writing, the sleep treatment focused medical device company's shares are down 7% to $31.25.
Why is the ResMed share price sinking?
On Friday, the ResMed share price rose 2% following the release of the company's quarterly update.
Unfortunately, US investors didn't respond anywhere near as positively, leading to the company's NYSE listed shares falling by approximately 3.5% on Friday night.
So, with each ResMed share equal to one-tenth of its NYSE shares, they have given back Friday's gains and some more today to reflect this.
Is this a buying opportunity?
A number of brokers are likely to see the weakness in the ResMed share price as a buying opportunity.
For example, this morning Morgans has reiterated its add rating with an improved price target of $37.24. It was pleased with its stronger than expected second quarter performance. Morgans commented:
2Q was ahead of market expectations, with robust sales across all product lines, but with GM headwinds limiting robust operating leverage.
Elsewhere, Goldman Sachs has retained its buy rating with an improved price target of $38.00. The broker was also pleased with its performance and remains positive on its outlook. It said:
Steady improvements in diagnosis rates and supply chain could widen opportunity for share gains.
Finally, over at Citi, its analysts have held firm with their buy rating and lifted their price target to $39.00. Citi notes that industry conditions are improving and are favourable for ResMed. The broker commented:
The supply chain situation is improving for RMD and the competitive dynamic remains in its favour.
Based on the current ResMed share price, these price targets imply potential upside of 19% to 25% for investors over the next 12 months.
