Insmed stock rating downgraded to Equalweight by Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) downgraded Insmed (NASDAQ:INSM) from Overweight to Equalweight while raising its price target to $126.00 from $112.00. The stock, which has surged 76.71% year-to-date and is trading near its 52-week high of $122.03, shows strong momentum according to InvestingPro data.

The rating change follows the approval of BRINSUPRI, which Morgan Stanley describes as a significant milestone in Insmed’s evolution toward becoming a leading player in rare lung diseases.

Morgan Stanley cited the clean label and extensive launch preparations as factors reinforcing confidence in the initial launch trajectory of the drug.

The firm has incorporated CRSsNP into its model to reflect brensocatib’s potential beyond bronchiectasis, which contributed to the higher price target despite the rating downgrade.

Morgan Stanley explained the downgrade by noting that the current valuation largely captures the near-term opportunity for Insmed.

In other recent news, Insmed Incorporated reported its second-quarter 2025 earnings, revealing a revenue of $107.4 million, which surpassed the forecast of $103.41 million. However, the company experienced a larger-than-expected loss per share, with an EPS of negative $1.70 compared to the expected negative $1.30. The FDA approved Insmed’s Brinsupri for treating non-cystic fibrosis bronchiectasis (NCFB), marking a significant milestone as it becomes the first FDA-approved therapy specifically targeting this condition. The treatment will be available in 10 mg and 25 mg doses for adults and children aged 12 and older. Following this approval, Jefferies raised its price target for Insmed to $148, maintaining a Buy rating. RBC Capital also increased its price target to $120, citing enthusiasm for the potential launch of Insmed’s drug brenso later this year. Jefferies had previously raised its price target to $129 ahead of the Prescription Drug User Fee Act date for brensocatib, scheduled for August 2025, expecting a first-in-disease approval. These developments reflect significant advancements for Insmed in the pharmaceutical market.

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