ResMed Shares Take a Hit on Thursday. Here’s Why.

2 min read | September 18, 2024 10:32 PM PDT | By Team Kalkine Media

Google News:

ResMed Shares Take a Hit on Thursday. Here’s Why. — Image source: shutterstock

Recent News

Is American Tower (NYSE:AMT) Building Momentum Again?

Equinix (NASDAQ:EQIX) Draws Market Focus As AI Data Demand Lifts

Is Caterpillar (NYSE:CAT) Navigating Changing Trade Dynamics?

Is Lockheed Martin (NYSE:LMT) Leading The Next Defense Stock Move?

Make Kalkine Media
My Trusted Source

Shares of ResMed (ASX:RMD) are experiencing a significant decline on Thursday, with the stock down 3.5% to AU$34.98 after opening at AU$35.30, compared to yesterday's close of $36.25. This downturn is notable against the backdrop of a generally rough day for the ASX 200 healthcare sector.

Sector-Wide Struggles

The healthcare sector is currently among the worst performers on the ASX, with the S&P/ASX 200 Health Care Index (ASX:XHJ) down 0.65%. Other prominent healthcare stocks, including CSL Ltd (ASX:CSL), Polynovo Ltd (ASX:PNV), and Cochlear Ltd (ASX:COH), are also facing losses today. This collective downturn could indicate broader market sentiment affecting healthcare equities.

Impact of US Market Performance

ResMed operates with a dual-listed structure, meaning its shares are traded on both the ASX and the New York Stock Exchange (NYSE). The performance of its US-listed stock, ResMed Inc (NYSE:RMD), often influences its Australian counterpart. Last night, the American shares fell by 5.12%, closing at US$238.03. This decline may have set the stage for today’s poor performance on the ASX.

Broker Downgrade Sparks Concerns

A significant factor in the US share drop appears to be a downgrade from Wolfe Research. Analyst Mike Polark changed his rating on ResMed from hold to sell, setting a 12-month price target of US$180 per share. If accurate, this projection could imply a substantial loss of value for the company. Polark's concerns are primarily centered around potential market share erosion due to competition from Eli Lilly, particularly with the anticipated launch of its GLP-1 medication tirzepatide for obstructive sleep apnea in 2025-2026.

ResMed’s Long-Term Performance

Despite the current sell-off, ResMed shares have demonstrated resilience over the past year, boasting an impressive 37.7% increase in 2024 and a 53.9% rise over the last 12 months.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.