Robert W. Baird analyst David Rescott has maintained their bullish stance on INSP stock, giving a Buy rating on May 8.
David Rescott has given his Buy rating due to a combination of factors including Inspire Medical Systems’ impressive year-over-year growth and the company’s ability to surpass expectations. Even though Inspire’s first-quarter results were slightly below the high expectations of investors, the company still managed to grow its US revenue by 25% year-over-year. When taking into account previous benefits, the underlying utilization rates remained stable or saw a slight increase, which is a key indicator of growth. Furthermore, the company’s international performance contributed significantly to exceeding the forecasts, suggesting robust global demand for their product.
Additionally, the upward revision of the full-year 2024 guidance reflects management’s confidence in sustained US and international market trends. Rescott notes that despite the first-quarter beat being primarily driven by international markets, there’s an anticipated return to historical sales levels which implies potential growth in the US sector. The issuance of profit guidance for FY24 is another positive sign, indicating a transition to profitability and long-term earnings potential. Lastly, updates to policy changes regarding oral appliance therapy do not seem to pose a significant challenge, and the anticipated next-generation system promises to maintain the company’s competitive edge going forward.
According to TipRanks, Rescott is a 3-star analyst with an average return of 1.7% and a 51.95% success rate. Rescott covers the Healthcare sector, focusing on stocks such as Nevro Corp, Penumbra, and LivaNova.
In another report released on May 8, KeyBanc also reiterated a Buy rating on the stock with a $278.00 price target.
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Inspire Medical Systems (INSP) Company Description:
Inspire Medical Systems, Inc. engages in the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea. It offers inspire therapy, which consists of a remote control and implantable components that includes pressure sensing lead, a neurostimulator, and a stimulation lead. The company was founded by Timothy P. Herbert in November 2007 and is headquartered in Golden Valley, MN.
