CFRA changed its financial outlook for Inspire Medical Systems (NYSE:INSP) on Tuesday, lowering its 12-month price target to $175 from $225 previously. The company 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 expected 2025 earnings per share (EPS) of $0.75. This rating represents a discount to the company’s historical average, attributed to a deceleration in growth relative to its historical performance.
Adjusted EPS estimates remain unchanged at $0.15 for 2024 and $0.75 for 2025. CFRA’s analysis indicates that despite the reduction in price target, Inspire Medical’s balance sheet is still viewed positively . The company highlights the company’s strong liquidity, highlighted by a high current ratio of 7.9x, and solid solvency with a low total debt-to-equity ratio of 4%.
CFRA also notes the company’s strategy to add new centers, which is progressing ahead of its goals and is expected to contribute to revenue growth over the next year or two. This expansion is expected to strengthen the company’s revenue stream and support its financial health.
Looking ahead, CFRA foresees growth opportunities for Inspire Medical with the soft launch of the next-generation Inspire V later this year and a full launch planned for the following year. The launch of these products is expected to add further impetus to the company’s growth trajectory.
In other recent news, Inspire Medical Systems has been the subject of several analyst outlooks and major financial developments. BofA Securities changed its price target for the medical technology company from $225 to $185, maintaining a Neutral rating due to concerns about decelerating growth and maturing business model.
Meanwhile, Oppenheimer reiterated the Perform rating on Inspire Medical, acknowledging ongoing debates about the effectiveness of hypoglossal nerve stimulation therapy used in the treatment of obstructive sleep apnea.
On a more positive note, Piper Sandler raised its price target for Inspire Medical to $255 from $250, maintaining its Overweight rating. The adjustment followed the company’s strong first-quarter financial report, which showed sales figures slightly above Wall Street expectations and earnings per share significantly above consensus. The company highlighted healthy underlying business trends while also raising its revenue forecast for fiscal 2024.
During the company’s press conference, Inspire Medical reported a 28% increase in revenue for the first quarter of 2024 to $164 million and raised its full-year revenue forecast. The company expects to reach profitability within the year and is preparing for the soft launch of the Inspire V system following its submission to the FDA.
These recent developments provide a comprehensive view of the current state of Inspire Medical Systems, with various analyzes and its financial results painting a detailed picture of its position in the market.
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