European Investor
13 Jul 2026, 10:44
ResMed Stock Falls 2.5% Premarket After Citi Downgrade Extends Weak One-Year Performance
ResMed (NYSE: RMD) shares fell 2.5% in premarket trading on Thursday after Citi downgraded the medical device maker to *Neutral* from *Buy*, adding to pressure on a stock that has already lost about 21% over the past year.
Why Is ResMed Stock Falling Today?
The immediate catalyst for Thursday's decline was Citi's downgrade, with the investment bank lowering its recommendation to Neutral from Buy after the stock's recent rebound.
While Citi did not signal a deterioration in ResMed's underlying business, the downgrade suggests the firm's upside expectations have become more balanced, prompting investors to take profits following the recent recovery from June lows.
ResMed Faces Valuation and Growth Questions
ResMed remains a global leader in sleep apnea and respiratory care devices, supported by recurring demand for CPAP equipment, masks, and its expanding digital health platform.
However, investor sentiment toward the stock has remained cautious over the past year. Beyond valuation concerns, the market continues to monitor the long-term impact of GLP-1 weight-loss therapies on the sleep apnea market, even though management has repeatedly stated that demand for diagnosis and treatment is expected to remain strong.
The latest analyst downgrade comes as ResMed attempts to recover from a prolonged decline that has left the shares down roughly 21% over the past 12 months.
What Investors Are Watching Next
Investors will focus on ResMed's upcoming earnings report for updates on device sales, recurring mask revenue, gross margins, and guidance. Commentary on demand trends, market share, and the evolving relationship between GLP-1 therapies and sleep apnea treatment will also be closely watched.
While Citi's downgrade weighed on the stock in premarket trading, investors are likely to remain focused on whether ResMed can accelerate earnings growth and regain momentum following its challenging performance over the past year.
ResMed (NYSE: RMD) shares fell 2.5% in premarket trading on Thursday after Citi downgraded the medical device maker to *Neutral* from *Buy*, adding to pressure on a stock that has already lost about 21% over the past year.
Why Is ResMed Stock Falling Today?
The immediate catalyst for Thursday's decline was Citi's downgrade, with the investment bank lowering its recommendation to Neutral from Buy after the stock's recent rebound.
While Citi did not signal a deterioration in ResMed's underlying business, the downgrade suggests the firm's upside expectations have become more balanced, prompting investors to take profits following the recent recovery from June lows.
ResMed Faces Valuation and Growth Questions
ResMed remains a global leader in sleep apnea and respiratory care devices, supported by recurring demand for CPAP equipment, masks, and its expanding digital health platform.
However, investor sentiment toward the stock has remained cautious over the past year. Beyond valuation concerns, the market continues to monitor the long-term impact of GLP-1 weight-loss therapies on the sleep apnea market, even though management has repeatedly stated that demand for diagnosis and treatment is expected to remain strong.
The latest analyst downgrade comes as ResMed attempts to recover from a prolonged decline that has left the shares down roughly 21% over the past 12 months.
What Investors Are Watching Next
Investors will focus on ResMed's upcoming earnings report for updates on device sales, recurring mask revenue, gross margins, and guidance. Commentary on demand trends, market share, and the evolving relationship between GLP-1 therapies and sleep apnea treatment will also be closely watched.
While Citi's downgrade weighed on the stock in premarket trading, investors are likely to remain focused on whether ResMed can accelerate earnings growth and regain momentum following its challenging performance over the past year.