What does Macquarie think ResMed shares are worth?

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

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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.

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.

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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.

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