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Inspire Medical Systems: Hold Rating Amid Transition Challenges and Revised Price Target

Analyst Larry Biegelsen of Wells Fargo maintained a Hold rating on Inspire Medical Systems (INSPResearch Report), reducing the price target to $174.00.

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Larry Biegelsen has given his Hold rating due to a combination of factors impacting Inspire Medical Systems. The company reported a strong first quarter with sales exceeding expectations, particularly in the U.S. market. However, the upcoming launch of Inspire V is expected to create temporary challenges, leading to a more back-loaded sales year. This has resulted in a lowered price target from $195 to $174, reflecting a cautious outlook despite the positive start to the year.
Management’s guidance for 2025 sales remains unchanged, but the anticipated transition period for the Inspire V launch is likely to affect second-quarter sales negatively. While the company has raised its full-year EPS guidance, increased spending on marketing and research for Inspire V is expected to impact short-term earnings. These factors contribute to the Hold rating, as the stock’s near-term performance may be hindered by these transitional dynamics.

In another report released on April 21, Stifel Nicolaus also maintained a Hold rating on the stock with a $175.00 price target.

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