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Investing.com - Mizuho has reduced its price target on Inspire Medical Systems (NYSE:INSP) to $110.00 from $135.00 while maintaining an Outperform rating on the stock. Currently trading at $73.71, INSP is near its 52-week low of $70.77 and appears undervalued according to InvestingPro Fair Value estimates, despite losing over 60% year-to-date.
The adjustment follows Inspire Medical’s recent quarterly results, which showed a $4 million revenue beat primarily driven by better-than-expected performance in markets outside the United States. U.S. growth of 9.5% was largely in line with previously lowered expectations following the company’s second-quarter 2025 reset. This comes against a backdrop of 22% revenue growth over the last twelve months.
Inspire Medical reported adjusted earnings per share of $0.38, significantly exceeding Mizuho’s estimate of -$0.21, as the company implemented more modest increases in selling, general, and administrative expenses than anticipated. The company remains profitable with diluted EPS of $1.74 over the last twelve months.
Looking ahead to 2026, Inspire Medical has provided preliminary guidance projecting 10-11% revenue growth, which falls approximately 350 basis points below the prevailing Street expectations of 14%.
Mizuho attributes the lighter preliminary guidance to several factors, including an ongoing extended I-4 inventory destocking cycle, potential challenges with SleepSync penetration at both new and existing sites, and continued headwinds from GLP-1 medication trials.
In other recent news, Inspire Medical Systems reported its third-quarter 2025 earnings, with revenue reaching $224.5 million, marking a 10% increase year-over-year and surpassing market expectations. The company’s earnings per share were $0.38, significantly exceeding the forecasted -$0.20. This performance was bolstered by lower operating expenses, contributing to the positive earnings results. KeyBanc maintained its Sector Weight rating on Inspire Medical Systems, noting signs of incremental stability following these results. Meanwhile, Wells Fargo upgraded the company’s stock rating from Equal Weight to Overweight, despite lowering the price target to $90.00 from $101.00. Wells Fargo highlighted a positive risk/reward profile, as the stock trades at less than two times the estimated sales for 2026. These developments indicate a favorable outlook from analysts, with emphasis on Inspire Medical’s recent financial performance.
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