Stifel holds Inspire Medical stock with $175 target

On Tuesday, Stifel analysts maintained a Hold rating on Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) shares, with a consistent price target of $175.00. The analysts provided insights into the company’s first-quarter performance, noting a revenue beat. The company has demonstrated robust growth with a 28.49% revenue increase over the last twelve months and maintains an impressive 84.68% gross profit margin. However, they highlighted that Inspire Medical’s full-year revenue guidance remained unchanged, marking the first instance of this occurrence outside of COVID-19-related anomalies.

The company’s management indicated that 2025 sales are expected to be stronger in the latter half of the year. They provided a second-quarter revenue guidance range of $210-220 million, which falls short of the prior market expectation of $228 million. According to the analysts, the lower guidance is partly due to physicians postponing procedures in anticipation of the new INSP V model, as well as some centers aiming to deplete their existing INSP IV inventory. According to InvestingPro, the company maintains excellent financial health with a score of 3.41 (GREAT), supported by strong liquidity metrics and solid cash flow generation.

The Stifel report suggested that these factors could lead to prolonged uncertainty throughout the second half of 2025, as medical centers will require time to train staff and transition to the new INSP V system. The analysts described Inspire Medical’s stock as being in a "tweener" phase – not particularly inexpensive on a revenue multiple basis, with signs that positive revenue revisions may be decelerating.

Regarding earnings per share (EPS), Stifel sees potential for continued growth. Nonetheless, they pointed out that the current stock multiple is approximately 45 times the street’s estimated EPS. Lastly, they warned of potential increased headline risk over the next 6 to 12 months and expressed the view that the market’s 2026 expectations for the company might be overly optimistic.

In other recent news, Inspire Medical Systems reported a strong performance for the first quarter of 2025, significantly exceeding earnings expectations with an earnings per share (EPS) of $0.10 compared to a forecasted loss of -$0.2433. The company achieved a 23% year-over-year revenue increase, reaching $201.3 million, driven by robust U.S. market performance. Despite the impressive quarterly results, Inspire Medical maintained its full-year revenue guidance, anticipating potential challenges during the second quarter due to the transition to its new Inspire V system. The full commercial launch of the Inspire V system in the U.S. was announced, which KeyBanc Capital Markets highlighted as crucial for the company’s long-term growth in the hypoglossal nerve stimulation market. Analysts from KeyBanc reaffirmed their Overweight rating for Inspire Medical, with a target price of $216.00, expressing confidence in the company’s strategic direction and the Inspire V system’s market potential. Inspire Medical plans to expand internationally, particularly in Europe and Asia, and has set a full-year revenue target between $940 million and $955 million, representing 17-19% growth. The company also increased its full-year EPS guidance to $2.20 to $2.30 per share, reflecting strong business momentum and strategic execution.

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