A snapshot of some broker views in some updated broker reports post the recent Resmed Investor Day

MST Marquee: Buy 12m PT $37.99 (Rodney Note - @Strawman would love how very specific that PT is :) - maybe they are doing the whole "sales tactic" thing of X.99 seeming much cheaper than the next whole dollar :))

Innovation catchup underway: Masks & Key App

• Launches 2nd new mask in ~12 months. Pent up innovation pipeline delivers
• Smartwatch integration apps a ‘must have’ as industry gears up for boost in vols
• MSTe: earnings unchanged.PT A$37.99 BUY (unchanged)

After a ~5 year hiatus, the RMD innovation pipeline is now delivering at an accelerated rate. At the New York investor day, RMD has launched the AirTouch N30i nasal mask to replace / augment the ~7 year old AirFit N30i. The new product is a “tube up” design that differs from the earlier product with a fabric covered frame and a cushion moulded from two different materials. Without customer feedback, the change appears incremental but, history shows that new mask launches rarely fail to boost revenue and margin. This is the second new product launch in ~12mths representing a faster pace of release vs history. Unsurprising, considering that RMD’s R&D spend did not fall during their ‘innovation hiatus’. This suggests that RMD has a cupboard full of new products ready to go. Indeed, CEO Mick Farrell says expect “increased product velocity”.

JP Morgan: Overweight 12m PT $37

ResMed delivered its 2030 Strategy at an Investor Day hosted in New York earlier. The broader management team provided greater insights to its strategy, following a changeover since the last Investor Day back in 2021, with the implications to market forecasts appearing minimal given few specific financial details.

• Long-term target focused on operating leverage

• Branching into sleep adjacencies

• Focusing on consumerisation of the product range

• Adherence at the heart of innovation

• Individualised omnichannels drive demand in each geography

• Multiple avenues identified for new ‘tidal wave’ of patients

• Baseline expectations see major competitor potentially back to US in FY26

Macquarie: Outperform 12m PT $36.25

Key points

• Key financial commentary: Five-year revenue growth to be in the high single digits (MRE/VA ~6% p.a. over FY24-29), with earnings growth higher than revenue growth (MRE/VA NPAT growth ~9% p.a.). Quarterly share repurchases are likely to increase during FY25.

• New mask launched

• US OSA market

• Re-supply

• RMD GLP-1 database

• Segment adjacencies

• Industry mega-trends

• AI

RBC: Sector Perform PT $34

Investor day outlines better than expected medium term outlook

Our view: RMD's investor day outlined a better than expected revenue and earnings outlook to 2030 supported by AI/ML, demand generation initiatives, higher resupply rates and expansion into new markets. Whilst the company exceeded the last investor day's revenue outlook, we note RMD benefited from the Philips recall. We continue to expect the return of Philips to limit RMD's revenue growth, although have tempered our assumptions. We have revised our forecasts, lifted our PT to US$224/share (CDI A$34) and maintained a Sector Perform rating

CLSA: Outperform 12m PT $40

• Smartwatch OSA functions surprisingly reliable = key demand gen driver

With ResMed’s (RMD) focus on “megatrend’s” to help drive OSA awareness, market growth and its own 5yr “high single digit” p.a. revenue growth target, we analyse the sleep apnea function on Apple’s Watch Series 10 and Samsung’s Galaxy watch, and provide high level views on the opportunity and challenges this may have for the obstructive sleep apnea (OSA) sector. Overall, we agree this is a key demand gen driver for OSA, noting encouraging specificity and sensitivity may help drive more quality patient engagement, with the potential to drive diagnosis rates higher. But we caution it may place further pressure on an already strained specialist workforce, therefore growth may ramp up over time. This is despite an increasing focus on home based services, and expectations clinicians may prioritise higher risk patients for testing. PT A$40.00; O-PF rating retained

• Sleep apnea detection in Apple & Samsung comparable to gold standard PSG
• Wearables to supercharge growth, but bottlenecks remain a near-term focus
• Price target A$40.00 and O-PF rating retained