Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Tuesday, Truist Securities adjusted its price target for Inspire Medical Systems (NYSE:INSP) stock, lowering it from $250.00 to $235.00 while maintaining a Buy rating. The adjustment follows the company’s fourth-quarter earnings per share (EPS) beat and a guidance for 2025 that surpassed consensus estimates. According to InvestingPro data, five analysts have recently revised their earnings estimates upward, with price targets ranging from $190 to $270. Despite these positive financial results, the company’s stock experienced a decline of approximately 5% after market close, a movement attributed to concerns about a Civil Investigative Demand (CID) from the Department of Justice (DOJ).
Inspire Medical Systems, which specializes in medical technology and commands a market capitalization of $5.4 billion, had previously announced its revenue on January 13, followed by a strong fourth-quarter performance. The company maintains impressive financial metrics, with InvestingPro data showing an 84.77% gross margin and robust revenue growth of 32.52% over the last twelve months. Analyst Richard Newitter from Truist highlighted the company’s solid gross margin and EPS beat, as well as its EPS guidance for the year 2025 that exceeded expectations. However, the optimism from these financial outcomes is potentially being dampened by the DOJ’s CID, an issue that Inspire Medical (TASE:PMCN) shares with several other MedTech companies within the last twelve months.
The CID process can be lengthy, sometimes taking years to resolve, and may ultimately result in nothing more than a modest settlement, if it leads to any financial impact at all. According to Newitter, while this legal matter could temporarily affect the company’s stock, the underlying financial health of Inspire Medical—marked by increasing profitability and a positive cash position—should allow the company to manage the situation effectively. He suggests that any weakness in the stock price related to the CID could be a buying opportunity, as there is no expected near-term business impact from the investigation.
Truist Securities reaffirmed its Buy rating on Inspire Medical Systems, indicating confidence in the company’s long-term prospects despite the current legal scrutiny. Investors are advised to monitor the situation as it unfolds, although the full implications of the CID may not become clear for several years.
In other recent news, Inspire Medical Systems has been the subject of several analyst adjustments. Morgan Stanley (NYSE:MS) has reduced its price target for the company to $220, maintaining an Overweight rating. This outlook comes after Inspire Medical’s profitability exceeded expectations. Piper Sandler also maintains an Overweight rating on the company’s stock with a price target of $233, highlighting the strength in the company’s profit and loss leverage despite a recent Department of Justice investigation. Inspire Medical reported Q4 earnings per share at $1.15, surpassing projections, and reiterated its full-year 2025 revenue guidance of $940-955 million.
On the other hand, Leerink Partners raised its price target for Inspire Medical from $193 to $194, keeping a Market Perform rating on the stock. This adjustment was made following the company’s Q4 earnings report and the announcement of a new DOJ investigation. Inspire Medical reiterated its full-year 2025 sales guidance of $940-955 million and introduced an initial earnings per share guidance for FY25 in the range of $2.10-2.20.
Meanwhile, Piper Sandler revised its price target for Inspire Medical, reducing it from $260 to $233, still maintaining its Overweight rating. This revision followed discussions with high-volume implanters of Inspire Medical’s devices. KeyBanc Capital Markets also adjusted its price target on Inspire Medical shares, lowering it to $234 from $236, while maintaining an Overweight rating. This follows the company’s pre-announcement of its Q4 results and initial guidance for 2025. These are the recent developments in Inspire Medical’s financial outlook as per various analyst firms.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.