The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

ResMed (RMD) shares are pushing higher on Tuesday after a senior RBC Capital Markets analyst upgraded the medical equipment specialist to an "Outperform" rating. In his research note, Craig Wong-Pan cited RMD's robust Q4 performance as he lifted his price target as well to $262, indicating potential upside of nearly 10% from here.

Note that ResMed stock has already been in a massive uptrend in recent months, currently trading about 28% above its June low.

Goldman Sachs Expects Fed Chair Kevin Warsh to Raise Rates This Week — But Not Because of Oil Prices.

Billionaire Charlie Munger, Who Died at 99, Skipped Insurance on His Mansion Since He Could Just Write a Check to Rebuild — 'All Intelligent People Do It My Way'

1 'Strong Buy' Dividend Stock Offering a 6.3% Yield Right Now

Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

RBC recommends buying RMD shares primarily because of the evolution in how the company is managing its balance sheet under new Chief Financial Officer Aaron Bloomer.

In August, management issued its first-ever guidance for the full year, which Wong-Pan dubbed a "key turning point" in his research report.

Additionally, ResMed introduced a substantial buyback program ($1.5 billion) for FY27 as well, signaling commitment to improving shareholder returns.

This newfound capital discipline and management transparency offer enhanced earnings visibility, establishing a solid operational foundation that reduces near-term downside volatility, the analyst added.

Despite concerns regarding the prospective return of rival Philips to the US sleep apnea market, RBC expects ResMed to maintain high-single-digit earnings per share (EPS) growth over the next three years.

According to Wong-Pan, fears of market share shifts are actually overblown relative to RMD's established device scale and digital health integration.

At a forward earnings multiple of about 18x, he finds ResMed shares attractive, given the firm's better-than-expected full-year earnings per share (EPS) guidance of over $12.

Even from a technical perspective, RMD currently sits comfortably above its key moving averages (MAs), with an RSI in the late 50s indicating significant buying pressure.

Other Wall Street analysts seem to agree with RBC's bullish stance on ResMed as well.

According to Barchart, the consensus rating on RMD stock sits at "Moderate Buy," with price targets as high as $320 indicating potential for another 40% upside from current levels in the months ahead.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com