It's turning out to be a lucrative day for ASX shares all around. So far this Tuesday, the S&P/ASX 200 Index (ASX: XJO) has added a healthy 1.09%, and is well back over 7,500 points. But let's talk about the ResMed Inc (ASX: RMD) share price for a moment.
Resmed shares are making the rosy gains of the broader market look a little tame by comparison. The ASX 200 healthcare stock is currently enjoying a robust gain of 6.12%, putting the company at $26.53 a share at the time of writing.
So what's going on with Resmed shares that might have promoted such an enthusiastic vault higher?
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Why is the ResMed share price up 6% this Tuesday?
Well, it's a bit of a mystery. There haven't been any fresh ASX developments out of Resmed today, or indeed since last week.
We can still speculate though. Resmed shares have been on a bit of a tear over the past few months. 2023 saw the company hit with some investor pessimism over the success of the drug Ozempic.
Many investors seemed to fear that Ozempic's success as an obesity treatment might translate into lower demand for Resmed's own sleep apnoea products. Between the start of August and the end of September last year, the Resmed share price dropped by more than 30%.
However, many ASX experts have come out of the woodwork over the past month and declared that this share price weakness represents a compelling buying opportunity.
Just today, my Fool colleague James covered ASX broker Goldman Sachs' buy rating on Resmed. Goldman described Resmed shares as "attractive" and sees "a favourable risk-reward skew post the recent [share price] de-rate". It has given the company a 12-month share price target of $32, which would see investors enjoy an upside of more than 20% if accurate.
We've also recently looked at the views of another ASX expert on Resmed. As my Fool colleague Tony has just discussed, Shaw and Partners senior investment advisor Jed Richards told investors that "several structural themes continue to support ResMed's growth in the medium to longer term, such as an ageing global population and an increasing awareness of sleep apnoea.
As such, he is also seeing value in Resmed shares right now.
So it's possible that investors are paying attention to these bullish views, and are driving Resmed shares higher as a result. Even so, Resmed shares still remain down around 11.7% over the past 12 months despite today's healthy gain.
