On Tuesday, CFRA made an adjustment to the financial outlook for Inspire Medical Systems (NYSE:INSP), lowering the 12-month stock price target to $175 from the previous $225. The firm has maintained a Hold rating on the stock.
The revision reflects a response to recent market movements and is based on a forward P/E of 233x the projected 2025 earnings per share (EPS) of $0.75. This valuation represents a discount to the company's historical forward average, attributed to a deceleration in growth compared to its historical performance.
The adjusted EPS estimates remain unchanged at $0.15 for 2024 and $0.75 for 2025. CFRA's analysis indicates that despite the reduction in the price target, Inspire Medical's balance sheet is still viewed positively. The firm highlights the company's strong liquidity, evidenced by a high current ratio of 7.9x, and solid solvency with total debt to capital at a low 4%.
CFRA also notes the company's strategy of adding new centers, which is proceeding ahead of its targets and is expected to contribute to top-line growth over the next one to two years. This expansion is anticipated to bolster the company's revenue stream and support its financial health.
Looking ahead, CFRA anticipates growth opportunities for Inspire Medical with the soft launch of the next-generation Inspire V later in the year and the full launch planned for the following year. These product launches are expected to provide additional momentum for the company's growth trajectory.
In other recent news, Inspire Medical Systems has been the subject of varied analyst perspectives and significant financial developments. BofA Securities adjusted its price target for the medical technology company from $225 to $185, maintaining a neutral rating due to concerns over growth deceleration and a maturing business model.
Meanwhile, Oppenheimer reaffirmed its Perform rating on Inspire Medical, acknowledging the ongoing debates surrounding the efficacy of hypoglossal nerve stimulation therapy used in treating obstructive sleep apnea.
On a more positive note, Piper Sandler increased its price target for Inspire Medical to $255 from $250, maintaining an Overweight rating. This adjustment followed the company's robust first-quarter financial report, which showed sales figures slightly above Wall Street expectations and earnings per share significantly surpassing consensus. The firm highlighted healthy underlying business trends, including raised revenue guidance for the fiscal year 2024.
In the company's own earnings call, Inspire Medical reported a 28% increase in revenue for the first quarter of 2024 to $164 million and raised its full-year revenue guidance. The company expects to achieve profitability within the year and is preparing for the soft launch of its Inspire V system following FDA submission.
These recent developments provide a comprehensive view of the current state of Inspire Medical Systems, with various analyses and its own financial performance painting a detailed picture of its standing in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.