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KeyBanc Capital Markets reiterated its overweight rating and $216.00 price target on Inspire Medical (TASE:BLWV) Systems (NYSE: NYSE:INSP) stock Tuesday, representing significant upside potential from the current price of $129.71. The stock is trading near its 52-week low of $123, while InvestingPro data shows the company maintains strong financials with an impressive 84.65% gross margin. The firm noted that the launch of the company’s Inspire V product is progressing as expected.
The research firm indicated that Inspire Medical has already trained most surgeons on the new system and is proceeding with contract addendums. The company, which InvestingPro analysis rates as having "GREAT" financial health, is also working to ensure all centers are using the SleepSync digital platform, which is required for Inspire V procedures.
KeyBanc identified the SleepSync implementation as the "biggest bottleneck" in the Inspire V rollout. Sales representatives are managing these conversions while simultaneously driving utilization and expanding into new centers, making this what management previously described as a "transitionary quarter."
The firm believes these improvements and planned future software updates for the Inspire V hardware are strengthening the company’s first-mover advantage in the hypoglossal nerve stimulation (HGNS) market. The technology is used to treat sleep apnea.
KeyBanc also noted it is "closely monitoring potential new competition" from Nyxoah (presumably NYSE: NYXH) and LivaNova (presumably NYSE: NASDAQ:LIVN) in the sleep apnea treatment space.
In other recent news, Inspire Medical Systems has reported a significant increase in its first-quarter earnings for 2025, with earnings per share (EPS) of $0.10, surpassing expectations that had forecasted a loss. Revenue also saw a substantial rise, reaching $201.3 million, marking a 23% increase year-over-year. Despite this strong performance, the company has maintained its full-year revenue guidance between $940 million and $955 million, reflecting a projected growth of 17-19%. Analysts from RBC Capital, Stifel, and KeyBanc have shared their insights on the company’s performance, with RBC Capital maintaining an Outperform rating and a $215 price target, while Stifel held a Hold rating with a $175 target. KeyBanc reaffirmed its Overweight rating and a $216 price target, expressing optimism about the full U.S. launch of the Inspire V system. The launch is expected to be a pivotal factor in the company’s growth strategy, although it may present transitional challenges in the second quarter. Inspire Medical Systems is also focusing on expanding its international presence, particularly in Europe and Asia, as part of its growth strategy for 2025.
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