ResMed (RMD) is expected to post strong fiscal Q4 earnings growth, helped by an 8.6% rise in sales and gains in gross margins, UBS Securities said Monday in a report.

US sales of sleep-apnea devices may continue to cool, reflecting a mature market rather than a meaningful impact from GLP-1 weight-loss drugs, the report said.

UBS said a production problem affecting ResMed's Astral ventilators is likely to weigh on fiscal 2027 results. The company has issued a field safety notice and is directing all output toward replacing affected units, limiting availability for normal sales. The size of the sales impact is unclear, the report said.

UBS trimmed its fiscal 2027 EPS estimate by about 1% to reflect ResMed's sale of MatrixCare, and raised its buyback assumption to $880 million from $800 million.

Fiscal Q4 earnings are due Aug. 6.

UBS cut its price target on ResMed stock to $300 from $312 and maintained its buy rating.

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