Why two brokers have named this ASX 200 stock as a best buy

Investors may want to pounce on this high-quality stock before it's too late.

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Brokers don't always agree when it comes to ASX 200 stock recommendations.

But one that a couple of leading brokers not only agree about, but also have on their best ideas lists right now is ResMed Inc (ASX: RMD).

It is a developer, manufacturer, and distributor of innovative medical devices and cloud-based software solutions that diagnose, treat, and manage sleep-disordered breathing, COPD, and other key chronic diseases.

Despite a recent rebound, the company's shares remain down approximately 15% since this time last year. This has been driven by concerns over the emergence of weight loss wonder drugs, which threaten to reduce its addressable market.

However, given the sheer size of its addressable market globally, a number of analysts believe that the ASX 200 stock can still grow at a rapid rate alongside drugs like Ozempic.

Who is bullish on this ASX 200 stock?

Analysts at Bell Potter and Morgans have the company's shares on their preferred and best ideas lists, respectively.

Bell Potter currently has a buy rating and $34.00 price target on them. This implies potential upside of 19% for investors. It said:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

Over at Morgans, its analysts have an add rating and $32.82 price target on the ASX 200 stock. This suggests upside of 15% for investors. They commented:

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.

Overall, it seems that these brokers agree that investors should be snapping up this high-quality company while its shares are down in the dumps.

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 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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