ResMed Inc (ASX: RMD) shares had a very tough time in 2023.
Concerns over the emergence of weight loss wonder drugs led to many investors selling down the sleep treatment company's shares.
This ultimately led to the ResMed share price losing 18% of its value over the 12 months.
Though, it is worth noting that things were looking a lot worse for shareholders until a decent rebound in the latter part of the year.
For example, from 1 January through to 31 October, ResMed shares were down 30%.
The question now, though, is whether its shares are still undervalued or not. Let's find out.
Are ResMed shares still undervalued?
While the company's shares are now trading almost 25% above 2023's low, a number of brokers still see material upside for them this year.
Goldman Sachs, for example, currently has a buy rating and a $32 price target on its shares. This implies a potential upside of 21% for investors over the next 12 months.
Elsewhere, Morgans has an add rating and a $32.74 price target, which suggests a potential upside of 24%.
And finally, the bulls at Macquarie have an even higher price target on the company's shares. They currently have an outperform rating and a $33.40 price target, which implies a potential upside of approximately 27% for investors over the next 12 months.
All in all, based on what these brokers are saying, it is fair to say that they believe ResMed shares remain undervalued in 2024.
All eyes will be on the company this month when it releases its second quarter and half-year update. That is due to be released on 25 January and should give investors an indication of how Ozempic's growing popularity is or is not impacting its performance.
