Stifel has lowered its price target for Inspire Medical Systems (NYSE: INSP) to $95.00 from $110.00, while continuing to rate the stock as a Buy. The change follows Inspire's revision to its newly issued 2026 guidance, which Stifel attributes to persistent reimbursement headwinds that have affected the company for several months.
In its assessment, Stifel characterizes the current environment as close to a "worst-case scenario" in which the procedure code 64582 would be billed with a -52 modifier, an outcome that would further reduce compensation to physicians for a procedure the firm already considers poorly paid.
Even after trimming its price target, Stifel emphasized valuation and financial metrics that it views as supportive of upside if reimbursement stabilizes. At roughly $60 per share, Stifel calculates Inspire is trading at about 1.4 times next twelve months revenue. The revised 2026 guidance still implies high single-digit percentage revenue growth at the midpoint, according to Stifel's summary.
Data cited from InvestingPro underlines some of Inspire's historical and balance-sheet strengths. The company has posted a 5-year revenue compound annual growth rate of 58 percent and carries more cash than debt. Additional financial detail from InvestingPro shows a current ratio of 5.29, and five analysts have recently increased their earnings estimates for the company.
Stifel also noted that Inspire's 2026 earnings-per-share guidance came in ahead of Street expectations even though revenue guidance was weaker than earlier projections. Reflecting potential operating leverage, Stifel increased its EPS estimates for the 2026-2031 period.
Other brokerages have reacted similarly, trimming price targets and altering ratings amid the reimbursement uncertainty:
- Truist Securities cut its price target to $70.00, citing less favorable reimbursement outcomes and delays tied to prior authorization.
- RBC Capital lowered its target to $68.00 after Inspire revised its 2026 guidance to forecast 4-10 percent year-over-year growth, a step down from earlier expectations.
- Piper Sandler reduced its target to $85.00 but maintained an Overweight rating following a fourth-quarter report that delivered revenue consistent with previous disclosures and adjusted EPS above expectations.
- Wells Fargo moved the stock from Overweight to Equal Weight and set a $70.00 target, pointing to continued reimbursement uncertainty as the primary concern.
- Baird downgraded Inspire to Neutral and cut its price target to $74.00, again citing substantial reimbursement challenges that affect the company's growth outlook.
Collectively, these adjustments reflect broad skepticism among analysts about the near-term revenue trajectory for Inspire in the face of reimbursement pressures, even as several firms recognize upside potential tied to margins and cash resources.
InvestingPro's tools also flag a valuation gap. The platform indicates the stock is trading materially below its Fair Value estimate and notes shares have declined 63.53 percent over the past year. InvestingPro offers a Fair Value calculator and a Pro Research Report with additional ProTips and analysis for subscribers interested in deeper valuation work and scenario modeling.
For market participants, the current mix of lowered targets, maintained buy ratings in some cases, and raised EPS estimates from certain analysts underscores a bifurcated view: near-term headwinds driven by reimbursement dynamics versus longer-term financial leverage and historical growth momentum. How reimbursement outcomes evolve will likely determine which side of that divide materializes.