Buy Rating for Resmed: Positive Phase 3 Trial Results and Market Conditions Boost AD109’s Appeal

Bank of America Securities analyst Lyanne Harrison maintained a Buy rating on Resmed (RMD – Research Report) today and set a price target of $280.00.

Lyanne Harrison has given her Buy rating due to a combination of factors including the positive results from Apnimed’s Phase 3 SynAIRgy trial for AD109, which showed significant improvements in treating obstructive sleep apnea (OSA). The trial demonstrated a 55.6% reduction in the apnea-hypopnea index (AHI) from baseline and meaningful improvements in oxygenation and disease severity for a substantial portion of participants. Additionally, the oral administration of AD109 offers a less intrusive treatment option compared to traditional CPAP therapy, potentially appealing to a broader range of patients.
Furthermore, the diverse participant demographics in the trial support the potential for widespread adoption of AD109 across the OSA patient network. Despite some limitations in disease control among participants, the consistent growth of Resmed and the favorable market conditions, including peer recall tailwinds, contribute to the Buy rating. The company’s current price-to-earnings ratio, which is lower than its five-year average, also suggests an attractive valuation, reinforcing the positive outlook for Resmed’s stock.