RBC Capital raised its price target for ResMed (NYSE:RMD) to $314.00 from $311.00 and retained an Outperform rating on the medical equipment company.
The incremental adjustment follows what RBC described as a "strong result featuring double digit revenue and earnings growth" that slightly exceeded both RBC's own estimates and consensus expectations. In its note, the firm highlighted that ResMed generated robust growth across all markets while continuing to achieve gross margin improvement and operating leverage.
RBC said it implemented modest increases to its forecasts, and those tweaks contributed to the uptick in the price target from $311 to $314. The firm continued to rate the stock Outperform, pointing to the company's earnings outlook, what it called an undemanding valuation and the total shareholder return implied by the new price target.
Additional analyst reactions accompanied ResMed's second-quarter fiscal 2026 financial disclosure. The company reported earnings per share of $2.81 for the quarter, topping analysts' forecast of $2.73 by 2.93%. ResMed also posted revenue of $1.4 billion, which matched consensus revenue expectations.
Following those results, KeyBanc Capital Markets raised its price target on ResMed to $302 from $299 while maintaining an Overweight rating, characterizing the financial results as largely positive. Needham maintained its Hold rating and drew attention to ResMed's improved organic revenue growth, which rose to 8% in the second quarter from 7% in the first quarter. Needham noted that this figure reverses a trend of slowing organic growth observed over the prior three quarters.
Taken together, the company results and subsequent analyst notes underscore ResMed's recent financial performance and how sell-side firms are positioning the stock based on those outcomes.