ResMed shares up more than 8% this week after Goldman note

The news: Sleep apnoea treatment device company ResMed is looking to snap out of an eight-week downtrend, gaining more than 8% since Monday following a positive note from Goldman Sachs.

The numbers: Goldman Sachs cut its price target for ResMed by 14% to $33 per share, but this still represents significant upside from the current price of $23.07. ResMed's price began tanking in early August after posting weak YTD results and has lost as much as 58% since then as new obesity drugs disrupted health stocks. Goldman acknowledged concerns about the drugs' potential impact on ResMed, but it said its research indicated this would be mitigated by market share gains and "continued improvements" in sleep apnoea diagnosis rates. ResMed had gained 5.15% on Wednesday as of 2:30pm AEST.

The context: ResMed's tepid results were attributed to rising costs and supply chain headwinds at the time, while its ongoing share price decline has been connected to the emergence of new drugs for obesity, a key risk factor in sleep apnoea.