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Investing.com - Mizuho (NYSE:MFG) has lowered its price target on Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) to $170.00 from $215.00 while maintaining an Outperform rating on the stock. The stock, currently trading at $129.95, sits near its 52-week low of $123.25, though InvestingPro analysis indicates the company maintains strong fundamentals with a "GREAT" financial health score.
The revision follows Inspire Medical’s reduced full-year guidance, which now projects top-line growth of 12-13%, down from the previous 17-18% forecast. The company also cut its adjusted earnings per share outlook to $1.00-$1.10 from $2.20-$2.30 previously.
Despite these reductions, Inspire Medical reported results that slightly exceeded lowered expectations, with performance $3 million and $0.25 per share above estimates. The company attributed this to marginally better U.S. Inspire performance and lower research and development spending. The company maintains impressive fundamentals with an 84.65% gross margin and 27.11% revenue growth over the last twelve months. Want deeper insights? InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial metrics.
Multiple factors contributed to the guidance reduction, including a slower-than-anticipated Inspire V (I5) roll-out, delayed implants, surgeon capacity constraints, and potential impacts from GLP-1 medications. The revised earnings outlook excludes approximately $0.60 of one-time impacts for the year. Despite these challenges, the company maintains a strong balance sheet with a current ratio of 9.01, indicating robust liquidity to navigate through temporary headwinds.
The company also noted that its adjusted EPS forecast includes a $1.20 impact from the lower revenue outlook coupled with higher sales and marketing expenses in the second half of 2025, which management described as somewhat of a "catch-up."
In other recent news, Inspire Medical Systems 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 faced a net loss of $3.6 million and revised its full-year earnings per share (EPS) guidance downward to a range of $0.40 to $0.50 from the earlier $2.20 to $2.30 estimate. Additionally, Inspire Medical Systems adjusted its 2025 revenue forecast to $900-$910 million, down from the previous $940-$955 million range. This revision led to a series of downgrades by major financial firms. Truist Securities, JPMorgan, KeyBanc, and Nephron Research all downgraded the company’s stock to hold or neutral. Notably, KeyBanc shifted its rating from Overweight to Sector Weight, while JPMorgan reduced its price target from $195.00 to $110.00. These adjustments reflect market concerns following the company’s earnings announcement.
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