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?
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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.
