What does Macquarie think ResMed shares are worth?

Does the broker see value in this blue chip? Let's find out.

ResMed Inc (ASX: RMD) shares are lifting off again on Monday.

At the time of writing, the sleep disorder treatment company's shares are up almost 3% to $37.09.

This means that its shares are now up 11% since this time last week.

Investors have been bidding the company's shares higher after being impressed with last week's third quarter update.

But is it too late to invest? Well, let's see what analysts at Macquarie Group Ltd (ASX: MQG) are saying about ResMed shares.

A young man goes over his finances and investment portfolio at home.

Image source: Getty Images

Can ResMed shares keep rising?

The good news is that the team at Macquarie doesn't believe it is too late to invest in this blue chip.

According to a note, the broker has retained its outperform rating on the company's shares with a $48.00 price target.

Based on its current share price, this implies potential upside of almost 30% for investors over the next 12 months.

Commenting on the company's performance during the third quarter, the broker said:

Revenue was in-line with Visible Alpha consensus (VA), with softer-than-expected devices growth offsetting stronger masks trends. Compositionally, Americas devices was -1% vs VA with RoW in-line, while Americas masks were +2% ahead of expectations but partly offset by RoW (-1%). Management note sleep lab backlogs are "at all-time highs", however RMD's digital investments (NightOwl, VPAP Tx) are expected to support new patient flow (demand generation, GLP-1, consumer wearables).

Gross margin improvement: Gross margin expanded +140bps YoY and +70bp QoQ driven by manufacturing and logistics efficiencies, as well as favourable product mix. RMD expects 4Q margin to be consistent with 3Q (i.e. ~60%), in line with 59-60% guided range for 2H25E.

Why is it bullish?

Macquarie believes the company is well-placed for growth and sees potential for ResMed shares to re-rate to higher multiples following a recent multiple compression. It explains:

We expect tariff exemption, new products, margin expansion, cash flow and capital deployment to reverse recent multiple compression. RMD expect 4Q25 gross margin to be in line with 3Q25 implying FY25 gross margin of ~59.6%, with upside risk if the USD remains weak. We see positive demand catalyst (GLP-1, wearables) in the medium term and sustained margin expansion near term. Reiterate Outperform.

It then concludes:

Retain Outperform driven by solid EPS growth over the forecast period, favourable balance sheet position and valuation appeal. RMD remains our preferred sector exposure.

All in all, this could make it one of the best blue chips to buy right now.

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 Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Stethoscope and a pen on a laptop.
Broker Notes

Macquarie tips an 8% dividend yield and 46% share price gain for this stock

This health stock is looking undervalued, the broker says.

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Broker Notes

AGL, Cochlear, WiseTech shares: Buy, hold, sell

Find out what brokers expect next for these ASX shares.

Read more »

A jockey gets down low on a beautiful race horse as they flash past in a professional horse race with another competitor and horse a little further behind in the background.
Broker Notes

Top broker says this ASX stock could rise 70%

This media stock looks like a bargain, the broker says.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

2 ASX stocks Bell Potter says could rise 95% and 114%

These two very different technology stocks have had good news recently.

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.
Broker Notes

4 ASX shares tipped by brokers to return 18% to 96%

Brokers have a buy or strong buy rating on all these ASX shares.

Read more »

Three friends walking together and enjoying free time.
Broker Notes

3 ASX shares tipped to fly 109% to 322% higher

Do you own any of these ASX shares in your portfolio?

Read more »

An investor wearing a dressing gown and holding a cup of coffee in a yellow mug gives a satisfied smile.
Broker Notes

3 ASX shares to buy amid a volatile market: experts

Experts say there are buying opportunities amid today's turbulent trading conditions.

Read more »

Two men and a woman sitting in a subway train side by side, reading newspapers.
Broker Notes

Buy, hold, sell: New Hope, Cleanaway Waste Management, NextDC shares

Let's check out some new ratings on these ASX 200 shares today.

Read more »