Inspire Medical Systems (NYSE:INSP) saw its stock plunge 27% following disappointing quarterly results and a lowered outlook, which led four major Wall Street firms to downgrade the shares.
Truist Securities, JPMorgan, KeyBanc, and Nephron Research all cut their ratings to hold or neutral after the company’s second-quarter report. The downgrades followed Inspire’s sharp reduction of its 2025 revenue guidance to $900-$910 million, down from an earlier range of $940-$955 million.
JPMorgan analyst Robbie Marcus lowered his price target from $195 to $110, stating, “Inspire provided a disappointing update on its 2Q25 call as a significant cut to 2025E guidance took center stage amid worsening concerns around the health of the company’s underlying markets. Some of the underlying causes of the 2025 sales guidance revision down to $900-910M from $940-955M sound familiar, but it’s frustrating to see a negative revision of this magnitude after original 2025E guidance was already framed as being conservative.”
The guidance cut was attributed to several challenges, including issues with the launch of the Inspire V (I-5) device, potential headwinds from GLP-1 weight loss drug trials, upcoming competition, and account capacity limits.
Truist Securities analyst Richard Newitter, who lowered his price target to $125 from $190, noted concern about “a third I-5 delay, which raises execution/visibility for us amid other potential headwinds.”
While management expects accelerated growth in 2026, analysts remain cautious about the company’s near-term outlook due to ongoing execution challenges and uncertain demand.
Inspire Medical System stock price
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