On Monday, Mizuho Securities adjusted its outlook on Inspire Medical Systems (NYSE:INSP), reducing the price target to $200 from the previous $250 while maintaining an Outperform rating on the company's shares. The revision follows comprehensive second-quarter checks and analysis by the firm.
The reduction in the price target was attributed to a valuation change after the SURMOUNT-OSA study results. Mizuho's assessment involved a series of investigations, including consultations with key opinion leaders (KOLs), surveys, and reviews of both public and private companies within the sector.
Inspire Medical Systems, which specializes in medical technology for the treatment of obstructive sleep apnea, has been under scrutiny by Mizuho's analyst as part of a broader sector review ahead of the second-quarter earnings season. The firm's analysis included 12 medical companies and incorporated feedback from four KOL events as well as two in-depth surveys.
The adjustment in the price target reflects a reassessment of Inspire Medical's market position and potential following the latest clinical data. Despite the lowered target, Mizuho continues to see the company in a favorable light, as evidenced by the maintained Outperform rating.
Investors and stakeholders in Inspire Medical Systems will be monitoring the company's performance closely, especially in light of the recent findings and Mizuho's updated valuation. The company's stock performance and future financial reports will likely be influenced by the outcomes of ongoing research and market dynamics.
In other recent news, Inspire Medical Systems has been making headlines with significant financial developments and analyst outlooks. The company reported a 28% increase in first-quarter revenue, reaching $164 million, and has raised its full-year revenue guidance. Inspire Medical also anticipates profitability within the year, a milestone signaled by its first-ever earnings per share (EPS) guidance, expecting a positive EPS of $0.10 to $0.20 for fiscal year 2024.
In the analyst world, BofA Securities adjusted its outlook on Inspire Medical, reducing its price target from $225.00 to $185.00 due to projected deceleration in revenue growth. However, the firm maintained a Neutral rating on the stock, suggesting neither bullish nor bearish expectations. Meanwhile, Oppenheimer maintained its Perform rating, engaging in discussions about 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. The firm emphasized healthy underlying business trends and saw any weakness in the stock price as a potential buying opportunity.
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