ResMed shares rose nearly 5% on Tuesday after RBC Capital Markets upgraded the medical device and digital health company from Sector Perform to Outperform. According to Sina Finance, the firm also raised its price target to $262 from $244, implying 17% upside from the current share price of $229.

RBC Capital Markets cited ResMed's improving earnings outlook and stronger capital management as the main reasons for the upgrade. The firm said ResMed could deliver high-single-digit earnings growth over the next several years.