On September 15, ResMed rose 5.09% in regular trading, trading at $234.33/share, with turnover of $117 million. The rally was driven by RBC Capital Markets upgrading the stock to Outperform from Sector Perform and raising its price target to $262 from $244.

RBC projected that ResMed is poised to achieve high-single-digit EPS growth over the next three years, even accounting for the potential return of competitor Philips Respironics to the US market in fiscal 2028. The upgrade marks a reversal from RBC's earlier July downgrade to Sector Perform. The consensus analyst rating on ResMed stands at overweight, with a mean price target of $262.82 according to FactSet.

The upgrade comes amid a series of recent catalysts, including ResMed's $450 million accelerated share buyback agreement with Citibank funded partly by proceeds from its MatrixCare divestiture, a 10% quarterly dividend increase to $0.66 per share, and plans to return over $1.85 billion to shareholders in fiscal 2027. The company posted fiscal Q4 non-GAAP EPS of $2.95, beating the $2.89 consensus estimate, on revenue of $1.46 billion.

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