KeyBanc cuts Inspire Medical stock target to $234

On Friday, KeyBanc Capital Markets adjusted its price target on Inspire Medical Systems (NYSE:INSP) shares, lowering it to $234 from $236, while maintaining an Overweight rating on the stock. The revision follows Inspire Medical (TASE:PMCN)'s pre-announcement of its fourth-quarter results and initial guidance for the year 2025. With a market capitalization of $5.6 billion and an impressive gross profit margin of 84.77%, InvestingPro analysis suggests the stock is currently trading above its Fair Value.

Inspire Medical Systems reported anticipated fourth-quarter revenues between $239.5 million and $239.7 million, a figure that slightly exceeds the KeyBanc's projection of $233.4 million and FactSet consensus of $233.0 million at the time of the announcement. This represents an approximate 3% beat on expected revenues. The company has demonstrated strong growth momentum, with revenue increasing by 32.52% over the last twelve months. For the year 2025, the company is projecting sales in the range of $940 million to $955 million, which is marginally lower than KeyBanc's forecast of $963 million and FactSet's $951 million.

During the company's fourth-quarter earnings call, the focus is likely to shift to the potential upside to the earnings per share (EPS). Analysts are closely monitoring the company's financial performance and future prospects. InvestingPro data reveals that 5 analysts have revised their earnings upward for the upcoming period, and the company maintains excellent financial health with a current ratio of 7.84, indicating strong liquidity. For deeper insights into Inspire Medical's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

A significant development for Inspire Medical Systems is the ongoing rollout of its next-generation Inspire V implant. The company has commenced a limited market release and is aiming for a full U.S. market launch around the third quarter of 2025. The Inspire V implant is expected to offer several improvements, including a reduced procedure time and difficulty due to the elimination of the sensing lead, a flexible platform that allows for future software updates, and the addition of multiple electrodes targeting new stimulation areas.

Investors and analysts are keenly awaiting more details and are poised to assess the impact of these advancements on the company's market position and financial growth.

In other recent news, Inspire Medical Systems has been a focal point of several analyst firms. Stifel revised its price target for the company to $190 from $200, maintaining a hold rating. This adjustment comes after Inspire Medical's fourth-quarter 2024 revenue beat analysts' expectations, with earnings between $239.5 million and $239.7 million, surpassing the consensus estimate of $232 million. Despite this, the unchanged year-over-year utilization rates and limited use of its new product, Inspire V, in the United States have raised concerns about its initial uptake.

Piper Sandler reaffirmed its positive stance on Inspire Medical, maintaining an overweight rating with a $260 price target. The firm highlighted the company's strong fourth-quarter performance, marked by a 32.52% revenue growth and an industry-leading gross margin of 84.77%. Piper Sandler also addressed concerns about the company's 2025 guidance, suggesting that it may be on the conservative side.

RBC Capital Markets provided a favorable outlook for the Medical Supplies & Devices sector for 2025, highlighting Inspire Medical as a dominant player in treating obstructive sleep apnea. They also noted Inspire Medical's fourth-quarter revenue, which indicates a 25% increase compared to the same quarter of the previous year.

Finally, Truist Securities increased the price target for Inspire Medical Systems shares to $250 from the previous $240 while maintaining a Buy rating. This adjustment followed the company's third-quarter revenue outperformance and significant earnings per share beat. These are the recent developments for Inspire Medical Systems.

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