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Investing.com - Piper Sandler has lowered its price target on Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) to $150.00 from $233.00 while maintaining an Overweight rating, citing challenges with the company’s Gen 5 product launch. The company, which maintains a "GREAT" financial health score according to InvestingPro, is currently trading near its 52-week low.
The firm’s decision follows Inspire Medical’s second-quarter results, which showed revenue of $217.1 million, exceeding Wall Street’s forecast of $214.3 million. The company, maintaining an impressive 84.65% gross margin and 27.11% year-over-year revenue growth, reported a GAAP earnings per share (EPS) loss of $0.12 and adjusted EPS of $0.45, compared to consensus expectations of a $0.20 loss.
Despite the better-than-feared quarterly performance, Inspire Medical significantly reduced its fiscal year 2025 guidance due to several headwinds, primarily related to the Gen 5 rollout. The guidance cut impacted both top and bottom-line forecasts, triggering a 20% drop in share price during after-hours trading. For deeper insights into Inspire Medical’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
Piper Sandler expressed disappointment with the magnitude of the guidance reduction but maintained its Overweight rating on the belief that many of the current headwinds are likely temporary in nature.
The research firm acknowledged that Inspire Medical stock remains "firmly in the show-me camp going forward" as the company works through its Gen 5 launch challenges.
In other recent news, Inspire Medical Systems has been the focus of several analyst revisions following its latest earnings report. The company reported a second-quarter revenue that slightly exceeded expectations, but it also significantly reduced its guidance for 2025, citing slower-than-expected growth of its Inspire V product. RBC Capital responded by lowering its price target for Inspire Medical Systems to $180 while maintaining an Outperform rating. Similarly, Stifel adjusted its price target to $140, maintaining a Hold rating due to lagging facility activations for the Inspire V product.
Truist Securities downgraded the stock from Buy to Hold, reducing its price target to $125, citing multiple headwinds affecting the company’s performance. Mizuho (NYSE:MFG) also lowered its price target to $170, maintaining an Outperform rating, after the company reduced its full-year growth projection to 12-13% and cut its adjusted earnings per share outlook. The company’s guidance revisions led to downgrades from four Wall Street firms, including Truist Securities, JPMorgan, KeyBanc, and Nephron Research, all shifting their ratings to hold or neutral. These developments reflect the challenges Inspire Medical Systems faces as it navigates slower growth and adjusts its future expectations.
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