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On Tuesday, Inspire Medical Systems (NYSE:INSP) received a reiterated Overweight stock rating and a $233.00 price target from Piper Sandler. The firm’s analyst highlighted the strength in the company’s profit and loss (P&L) leverage, despite the recent Department of Justice (DOJ) investigation.
Inspire Medical (TASE:PMCN) reported Q4 earnings per share (EPS) at $1.15, surpassing both Piper Sandler’s projection of $0.71 and the consensus estimate of $0.73. The company’s Q4 top-line results were in line with expectations set by a previous announcement last month. The analyst from Piper Sandler expressed optimism about Inspire Medical’s top-line growth and emerging P&L leverage.
Looking ahead, Inspire Medical reiterated its full-year 2025 revenue guidance of $940-955 million, indicating a year-over-year growth of 17-19%. Moreover, the company has provided an initial EPS guidance for FY25 in the range of $2.10-2.20, which is above the consensus estimate of $1.97. Piper Sandler believes that these targets are likely conservative estimates, reflecting the company’s typical approach. For deeper insights into Inspire Medical’s growth trajectory and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
The analyst did acknowledge the negative aspect of Inspire Medical having received a Civil Investigative Demand (CID) from the DOJ over allegations of false claims. While this development is seen as unfortunate, Piper Sandler is inclined to give the company the benefit of the doubt, suggesting that such situations are often manageable for medical device companies based on their experience.
Despite the DOJ investigation news, which has indicated a potential decline in Inspire Medical’s stock, Piper Sandler emphasized a positive outlook from the company’s earnings call and maintained their Overweight rating with a $233 price target.
In other recent news, Inspire Medical Systems has been the subject of various analyst reports. Leerink Partners adjusted the company’s stock target to $194, maintaining a Market Perform rating. This decision followed the company’s fourth-quarter earnings report for 2024 and the announcement of a Department of Justice investigation. Inspire Medical projected an earnings per share (EPS) guidance for 2025 of $2.10-2.20, approximately 9% higher than the consensus estimate.
Piper Sandler, on the other hand, reduced its stock target for Inspire Medical to $233, despite maintaining an Overweight rating. This adjustment was influenced by conversations with high-volume U.S. implanters of Inspire Medical’s hypoglossal nerve stimulation devices, providing a mixed outlook for the company.
KeyBanc Capital Markets lowered its price target on Inspire Medical to $234, while keeping an Overweight rating. This followed the company’s pre-announcement of its fourth-quarter results and initial guidance for 2025. The company reported anticipated fourth-quarter revenues between $239.5 million and $239.7 million, surpassing KeyBanc’s projection of $233.4 million.
Stifel analysts cut their outlook on Inspire Medical, reducing the price target to $190 while maintaining a Hold rating. This followed a period of fluctuating stock performance and a recent management presentation. Despite a revenue beat in the fourth quarter of 2024, concerns about the initial uptake of the new product, Inspire V, were raised.
Lastly, Piper Sandler reaffirmed its positive stance on Inspire Medical, maintaining an Overweight rating with a $260.00 price target. This followed a meeting with Inspire Medical’s management, leading to several optimistic observations. The firm anticipates that profit and loss leverage will continue into 2025, propelled by improvements in gross margins and reductions in selling, general, and administrative expenses.
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