Shares of ResMed DRC (RMD.AU) are surging 6.81% in pre-market trading on Tuesday, building on the momentum from Monday's 3.82% gain. This significant uptick comes as investors seem to be reevaluating the company's long-term prospects in the sleep disorder treatment market.

The rally appears to be fueled by growing analyst confidence in ResMed's future. Goldman Sachs has recently reiterated its conviction buy rating on the stock with a price target of $49.00, signaling strong upside potential. Analysts are increasingly viewing concerns about weight-loss drugs disrupting ResMed's market as overdone. Instead, there's a growing belief that rising awareness around sleep apnea may actually boost diagnosis rates, potentially benefiting ResMed's business.

ResMed's strong position in the CPAP device market and its expanding cloud-based software offering are key factors contributing to its positive outlook. Despite recent pressures, the company has consistently demonstrated its quality through strong returns on equity and steady earnings growth over the long term. As investors reassess ResMed's value proposition, the stock appears to be regaining favor, with today's pre-market surge potentially signaling a shift in market sentiment.