Inspire Medical Systems stock plunges after results trigger analyst downgrades

Published 05/08/2025, 12:40
© Reuters.

Investing.com -- Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) stock plunged 27% after the company’s disappointing quarterly results and guidance prompted four Wall Street firms to downgrade the shares.

Truist Securities, JPMorgan, KeyBanc, and Nephron Research all lowered their ratings on the sleep apnea treatment provider to hold or neutral following the company’s second quarter report. The downgrades came after Inspire significantly cut its 2025 revenue guidance to $900-910 million from the previous $940-955 million range.

JPMorgan analyst Robbie Marcus reduced his price target to $110 from $195, noting: "Inspire provided a disappointing update on its 2Q25 call as a significant cut to 2025E guidance took center stage amid worsening concerns around the health of the company’s underlying markets. Some of the underlying causes of the 2025 sales guidance revision down to $900-910M from $940-955M sound familiar, but it’s frustrating to see a negative revision of this magnitude after original 2025E guidance was already framed as being conservative."

The guidance cut was attributed to multiple factors, including ongoing challenges with the company’s Inspire V (I-5) device launch, potential headwinds from GLP-1 weight loss drug trials, upcoming competition, and account capacity constraints.

Truist Securities analyst Richard Newitter, who lowered his price target to $125 from $190, expressed concern about "a third I-5 delay, which raises execution/visibility for us amid other potential headwinds."

Despite management’s projection of accelerated growth in 2026, analysts remain skeptical about the company’s near-term prospects given the execution issues and uncertain demand trends.

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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