Inspire Medical Systems stock rating downgraded by KeyBanc on guidance cuts

Investing.com - KeyBanc downgraded Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) from Overweight to Sector Weight following the company’s second-quarter 2025 results. The stock, currently trading at $129.95, sits near its 52-week low of $123.25, though InvestingPro analysis suggests the stock is slightly undervalued at current levels.

The downgrade comes despite Inspire Medical Systems reporting second-quarter revenue that modestly exceeded market expectations.

KeyBanc cited the "magnitude of 2025 guidance revisions" for both sales and earnings per share as a key factor behind the rating change, noting that these revisions were more significant than anticipated.

The research firm expressed continued optimism about the long-term potential for Inspire V, but indicated that near-term to mid-term visibility appears "incrementally uncertain" due to several new and existing headwinds.

KeyBanc also highlighted concerns about Inspire Medical’s profitability trajectory, noting that the company now plans to increase direct-to-consumer spending at a rate exceeding expected sales growth, impacting the previously anticipated profitability inflection.

In other recent news, Inspire Medical Systems reported its second-quarter earnings for 2025, showing a total revenue of $217.1 million, which marks an 11% increase compared to the previous year. Despite the revenue growth, the company reported a net loss of $3.6 million. Additionally, Inspire Medical revised its full-year earnings per share (EPS) guidance downward to a range of $0.40 to $0.50, from the earlier projection of $2.20 to $2.30. The company also adjusted its revenue forecast for 2025 to $900-$910 million, down from the previous range of $940-$955 million. Following these developments, JPMorgan downgraded Inspire Medical from Overweight to Neutral, significantly lowering its price target to $110.00 from $195.00. The downgrade was attributed to the company’s reduced sales guidance and market concerns. These updates reflect recent developments and adjustments in Inspire Medical’s financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.