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Investing.com - JPMorgan downgraded Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) from Overweight to Neutral on Tuesday, while significantly reducing its price target to $110.00 from $195.00. The stock, currently trading near its 52-week low, maintains a "GREAT" financial health score according to InvestingPro analysis.
The downgrade follows Inspire Medical’s disappointing second-quarter 2025 earnings call, where the company cut its 2025 sales guidance to $900-910 million from the previous $940-955 million range. Despite the guidance cut, the company maintains impressive fundamentals with an 84.65% gross margin and 27.11% revenue growth over the last twelve months.
JPMorgan cited multiple concerns in its analysis, including uncertainty about underlying market demand and ongoing execution issues at the medical device company, which specializes in sleep apnea treatment solutions.
The research firm expressed frustration with the magnitude of the guidance reduction, especially since Inspire’s original 2025 guidance had already been framed as conservative to account for the Inspire V product launch dynamics.
While Inspire management has guided for an acceleration in 2026 sales growth, with analysts expected to model 14-15% growth next year, JPMorgan indicated that investors would likely remain skeptical about these projections given the current performance issues.
In other recent news, Inspire Medical Systems Inc . reported its second-quarter earnings for 2025, with total revenue reaching $217.1 million, marking an 11% increase compared to the previous year. Despite this revenue growth, the company experienced a net loss of $3.6 million. The company did not disclose its earnings per share for the quarter but adjusted its full-year EPS guidance downward to a range of $0.40 to $0.50, from a previous range of $2.20 to $2.30. Additionally, Inspire Medical Systems revised its revenue forecast for the year to between $900 million and $910 million, down from the earlier projection of $940 million to $955 million. These recent developments indicate a shift in the company’s financial expectations for the remainder of the year.
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