This fallen ASX 100 darling could be one of the best shares to buy right now

Is this a bargain buy that cannot be ignored by investors right now?

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History shows that if can pick up quality ASX shares when they are cheap, then you have a great chance of generating big returns.

With that in mind, it could literally pay to listen to what analysts are saying about an ASX 100 darling that has fallen heavily this year.

That fallen giant is sleep treatment solutions company ResMed Inc. (ASX: RMD).

Despite a recent rebound, its shares remain down approximately 30% since the start of August. This has been driven by concerns over the rise of weight loss wonder drugs like Ozempic, which threaten to reduce the company's addressable market.

Is ResMed a cheap ASX share to buy?

Analysts are overwhelmingly bullish on ResMed shares at current levels and have buy ratings with price targets suggesting major upside potential.

For example, analysts at Morgans have the company on their best ideas list. They said:

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.

Morgans has an add rating and a $32.74 price target on its shares, which implies a potential upside of 37% for investors.

What else are analysts saying?

Over at Goldman Sachs, its analysts think ResMed is a cheap ASX share. The broker has a buy rating and a $32 price target. It recently said:

We view the risk/reward to be favorable and are Buy-rated. We view valuation as attractive and see a favourable risk-reward skew post the recent de-rate, noting the shares are trading meaningfully below historical averages on both a P/E and EV/EBITDA basis.

Finally, over at Citi, its analysts believe its shares have been "oversold" and have recently put a buy rating and $29.00 price target on them. They said:

Our new DCF-derived TP of A$29.00, implies a ~21.5x PE FY25 (below the pre-pandemic average of ~24x) vs. ~16x currently. We view the shares as oversold and maintain our Buy rating.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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