Truist upgrades Inspire Medical to Buy after positive reimbursement ‘surprise’

Truist upgraded Inspire Medical (INSP) to Buy from Hold with a price target of $165, up from $128, following the “surprise” positive reimbursement OPPS “upcode.” The firm didn’t upgrade the shares initially as it was unsure if the news was “too good to be true” or a loophole that might reverse, but after conversations with a reimbursement specialist the firm thinks it is likely that Inspire will and should increase its average selling price “considerably” and that even if code changes were to be required down the road, an elevated selling price and reimbursement situation is likely here to stay, regardless.