The ResMed Inc (ASX: RMD) share price is under pressure on Monday.
In morning trade, the sleep disorder treatment company's shares are down over 4% to $38.35.
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Why is the ResMed share price falling?
Investors have been selling the company's shares this morning after its NYSE-listed shares tumbled on Wall Street on Friday night.
While most analysts were very impressed with ResMed's performance in the second quarter, it seems that some investors saw something they didn't like. This could possibly be a slight softening of organic growth during the quarter. However, the decline seems excessive for this.
And although rival Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) expects to be negatively impacted by trade tariffs, which explains its sizeable decline today, this isn't expected to be the case for ResMed. It believes that Donald Trump's action could be a boost to sales.
Is this decline a buying opportunity?
The team at Goldman Sachs thinks that investors should be snapping up ResMed shares while they are down.
This morning, the broker has reaffirmed its buy rating with a slightly improved price target of $49.00.
Based on the latest ResMed share price, this implies potential upside of 28% for investors over the next 12 months.
Commenting on the company's quarterly update, the broker said:
RMD delivered a strong 2Q25 result with global devices sales ~250bps higher and global masks sales broadly in line with Visible Alpha Consensus Data. The strength in US devices sales (+12% vs pcp) in our view is early evidence that the growing awareness of Obstructive Sleep Apnea (OSA) from the uptick in consumer wearables and GLP- 1 therapies is translating to demand for RMD's products.
Importantly, the result reinforced the various growth levers which RMD has greater control over. These include (1) Ongoing roll out of Brightree resupply and Snap technology, supporting our forecast of +14% 2H25 global masks growth, (2) Launch of AirSense11 across global markets driving +9% 2H25 (Gse) Europe, Asia and other markets devices growth and (3) Investment in technology and infrastructure to increase manufacturing efficiencies supporting an expansion in Gross Margin (GM%). Adjusting for the 2Q25 FX headwind, RMD's GM% improved by ~30bps sequentially. With the 2Q25 result continuing to highlight the defensiveness of RMD's existing patient cohort in light of rising GLP-1 usage and progress in executing its 2030 strategy, we reiterate our Buy rating.
All in all, now could be a good time to take a good look at this high-quality company.
