Inspire Medical Systems stock price target lowered to $140 at Stifel

Investing.com - Stifel lowered its price target on Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) to $140.00 from $175.00 on Tuesday, while maintaining a Hold rating on the stock. The company, currently trading near its 52-week low of $123.25, has maintained strong fundamentals with a gross margin of 84.65% and revenue growth of 27.11% over the last twelve months.

The revision follows Inspire Medical’s second-quarter 2025 results, which showed revenue modestly ahead of Street expectations, but included a reduction in 2025 revenue guidance. Stifel noted this reduction was partially due to lagging Inspire V facility activations. According to InvestingPro analysis, the company maintains a strong financial position with a current ratio of 9.01 and minimal debt-to-equity of 0.05.

Stifel expressed caution about whether the slowdown represents a new trend or a temporary setback. Despite management’s optimism that some issues are transitory and revenue growth will accelerate next year, the firm has lowered its 2026 revenue estimate.

The research firm questioned whether Inspire V’s additional efficiencies would allow 2026 growth to accelerate beyond the implied second-half 2025 guidance of 10% growth, especially with competition expected to enter the market.

Stifel also highlighted concerns about the impact on earnings, noting the guidance revision had a decremental margin of approximately 85%, which could delay an earnings-related investment story by several years.

In other recent news, Inspire Medical Systems has reported a reduction in its full-year guidance, projecting top-line growth of 12-13%, down from the earlier forecast of 17-18%. The company also adjusted its earnings per share outlook to $1.00-$1.10, a significant decrease from the previous estimate of $2.20-$2.30. Following these announcements, several major financial firms have downgraded their ratings on Inspire Medical Systems. Truist Securities downgraded the stock from Buy to Hold, with a new price target of $125.00, citing concerns about the company’s Inspire V (I-5) product performance. Mizuho (NYSE:MFG) also lowered its price target to $170.00 while maintaining an Outperform rating. Additionally, JPMorgan reduced its rating from Overweight to Neutral and slashed its price target to $110.00. KeyBanc followed suit, downgrading the stock to Sector Weight. These developments reflect broader market concerns following Inspire Medical Systems’ recent financial disclosures.

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