Inspire Medical price target lowered to $85 from $165 at Piper Sandler

Piper Sandler lowered the firm’s price target on Inspire Medical (INSP) to $85 from $165 and keeps an Overweight rating on the shares. The firm notes the company reported Q4 results with top-line consistent with the pre-announcement last month, while adjusted EPS came in well-above its model at $1.65. Regarding FY2026, Inspire lowered its top-line guidance given the Gen 5 reimbursement situation/uncertainty. The company announced that Gen 5 is moving to CPT code 64582 with the -52 modifier after receiving clarification, a departure from the previous strategy to bill Gen 5 using 64568. While this is disappointing given the haircut from the modifier to physician reimbursement, the clarification provides a more predictable pathway forward, Piper argues.