Mizuho Securities analyst Anthony Petrone maintained a Buy rating on Inspire Medical Systems (INSP – Research Report) on May 8 and set a price target of $250.00.
Anthony Petrone has given his Buy rating due to a combination of factors including Inspire Medical Systems’ stronger than expected performance in overseas implant sales and substantial gains in leverage. The company’s updated full-year guidance exceeded expectations, raising its top-line forecast by $8 million and introducing an earnings per share (EPS) outlook that notably surpassed the negative consensus forecast from the Street. Inspire Medical’s stock presented an attractive investment opportunity after experiencing a 15% drop post-market, which Petrone attributes to an overreaction, particularly in light of the robust guidance and the anticipated net tailwind from expanded coverage ahead of potential competition from GLP-1 therapies.
Further reinforcing the Buy rating, Petrone emphasizes the robust outlook for Inspire Medical Systems amidst discussions about the trajectory of U.S. Inspire implants. The FDA label expansion and recent coverage expansion by UnitedHealth are expected to mitigate any potential challenges from GLP-1 therapies entering the market. Petrone perceives Inspire Medical as an exceptional mid-cap Medtech growth asset, especially considering recent acquisitions within the sector. Adjustments to the company’s sales and EPS estimates for 2024 reflect a positive outlook, with the price target being maintained at $250, significantly above the current trading price, and justifying a premium valuation compared to slower-growing peers in the industry.
In another report released on May 8, Piper Sandler also maintained a Buy rating on the stock with a $255.00 price target.
INSP’s price has also changed moderately for the past six months – from $129.950 to $163.410, which is a 25.75% increase.
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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.
