JPM downgrades Inspire Medical on lowered guidance

Published 05/08/2025, 14:06
© Reuters.

Investing.com -- JP Morgan downgraded Inspire Medical (TASE:BLWV) Systems (NYSE:INSP) to Neutral from Overweight, saying a sharp cut to full-year sales guidance and mixed execution leave investors with limited visibility into near-term growth.

JPM also slashed its price target to $110 from $205.

“With so many reasons given for the lowered guide and deceleration in 2Q ahead of further destocking, we think investors will struggle to separate ongoing logistics and execution issues from underlying demand issues,” analysts said.

The company now expects 2025 revenue of $900 million to $910 million, down from its previous forecast of $940 million to $955 million and below Wall Street’s $949 million estimate.

JP Morgan said the revised guidance despite already being framed as conservative raises fresh doubts around demand trends and Inspire’s ability to navigate onboarding delays and reimbursement hurdles for its new Inspire V device.

While management cited several drivers for the cut, including onboarding delays, billing software lags tied to a new CPT code, and continued destocking of its previous-generation product, JPM said the wide range of issues will make it harder for investors to separate execution hiccups from demand softness.

The brokerage now expects a heavier back-half sales split, with revenue forecast at $221 million in Q3 and $265 million in Q4.

Although Inspire expects sales growth to reaccelerate to 14–15% in 2026, JP Morgan said it is too early to underwrite that view.

 

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