RBC maintains Outperform on Inspire Medical, $260 price target

Published 11/02/2025, 15:12
RBC maintains Outperform on Inspire Medical, $260 price target

Tuesday, RBC Capital Markets upheld a positive outlook on Inspire Medical Systems (NYSE:INSP) shares, reiterating an Outperform rating with a steady price target of $260.00. The stock currently trades at $180.99, having experienced a notable 8.3% decline over the past week. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by strong liquidity and moderate debt levels. The affirmation came after the company reported its fourth-quarter earnings, which included a solid beat on earnings per share (EPS) and revenue that aligned with expectations set by a pre-release on January 13.

Inspire Medical (TASE:PMCN)’s revenue for the fourth quarter matched the figures projected in its earlier announcement, which had already surpassed the previous consensus by 3%. Notably, the company’s EPS outperformed consensus estimates by a remarkable 57%. This strong performance is seen as a testament to Inspire Medical’s continued profitability and operational excellence.

The management of Inspire Medical has confirmed its sales guidance for the year 2025, aiming for $940-955 million, which indicates an increase of 17-19%. Additionally, the company has provided a new positive EPS guidance ranging from $2.10 to $2.20, compared to the Street’s expectation of $1.97. This optimistic outlook aligns with the company’s strong track record, having achieved 32.5% revenue growth in the last twelve months. InvestingPro subscribers can access 12+ additional key insights about Inspire Medical’s growth prospects and valuation metrics. This guidance reflects the company’s confidence in its growth trajectory and its ability to deliver on its financial goals.

The analyst from RBC Capital Markets expressed a bullish stance on Inspire Medical, citing upcoming catalysts that are expected to drive the company’s performance. One such anticipated catalyst is the full launch of Inspire V, a product that is poised to contribute significantly to the company’s growth and potentially enable it to surpass its conservative guidance.

In the wake of the fourth-quarter results, RBC Capital Markets has reiterated its Outperform rating and price target, signaling continued confidence in Inspire Medical’s prospects and its ability to achieve and exceed its financial targets in the coming years. The broader analyst consensus remains bullish, with five analysts recently revising their earnings estimates upward. For comprehensive analysis and detailed valuation metrics, investors can access the full Pro Research Report available on InvestingPro, which provides deep-dive analysis of Inspire Medical among 1,400+ top US stocks.

In other recent news, Inspire Medical Systems has been the subject of several analyst reports. Truist Securities reduced its target price from $250 to $235, but retained its buy rating. This followed the company’s fourth-quarter earnings per share (EPS) beat and a guidance for 2025 that surpassed consensus estimates. However, a Civil Investigative Demand (CID) from the Department of Justice has raised some concerns.

Morgan Stanley (NYSE:MS) also lowered its price target for Inspire Medical from $230 to $220, while maintaining an Overweight rating. The firm noted that both the existing and new guidance provided by Inspire Medical appear conservative, suggesting there might be room for positive performance.

Piper Sandler reiterated an Overweight rating and a $233 price target for Inspire Medical. The firm highlighted the strength in the company’s profit and loss (P&L) leverage, despite the recent DOJ investigation. The company reported Q4 EPS at $1.15, surpassing both Piper Sandler’s projection of $0.71 and the consensus estimate of $0.73.

Leerink Partners adjusted the price target for Inspire Medical from $193 to $194, maintaining a Market Perform rating. The company reported fourth-quarter earnings in line with their early January pre-announcement and reiterated their full-year 2025 sales guidance of $940-955 million.

Lastly, Piper Sandler reduced its price target for Inspire Medical from $260 to $233, while maintaining an Overweight rating. The revision followed conversations with two high-volume U.S. implanters of Inspire Medical’s hypoglossal nerve stimulation devices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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