It has been a tough 12 months for the ResMed Inc. (ASX: RMD) share price.
Despite recovering strongly since hitting a 52-week low of $21.14 in September, the sleep treatment company's shares are still down 20% on an annual basis.
This has been driven by concerns over the impact of GLP-1 drugs like Ozempic on its addressable market.
But with many analysts saying that these drugs are not a threat, should investors be snapping up ResMed's shares before the release of its second quarter update next week?
Is the ResMed share price good value?
The team at Citi has been looking at the company ahead of its results release.
According to the note, the broker is expecting double-digit revenue growth for the second quarter. This is expected to be driven by solid performances across devices, masks, and software.
As a result, it sees a lot of value in its shares and has put a buy rating and $29.00 price target on them.
Based on the current ResMed share price of $26.00, this implies potential upside of 11.5% for investors over the next 12 months.
Over at Goldman Sachs, its analysts agree and are recommending the company as a buy.
The broker is even more positive, though, with its buy rating and $32.00 price target. This suggests a return of 23% for investors from current levels.
Its analysts are not concerned by the threat of GLP-1 drugs and believe investors should be snapping up its shares while they are cheap. The broker said:
[W]e believe the perceived downside risk from GLP-1/GIPs has been over-capitalised at RMD's current valuation. Overall, we reduce our TP -3% (with our earnings upgrades offset by mark to market multiples today), and continue to see asymmetric upside risk from current levels and reiterate our Buy rating.
