Inspire Medical Systems (INSP) Downgraded by Oppenheimer, Shares Drop 12%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: seekingalpha
- Rating Downgrade Impact: Oppenheimer downgraded Inspire Medical Systems from outperform to perform due to CMS's update indicating that obstructive sleep apnea is no longer a covered indication under the vagus nerve stimulation National Coverage Determination, leading analyst Suraj Kalia to predict a potential recalibration of FY26 guidance.
- Increased Sales Pressure: The dynamics of new site openings and inventory sales are now under pressure, which could negatively impact Inspire's market performance, directly affecting the company's revenue and market share.
- Stock Price Volatility: Inspire's shares dropped 12% in Thursday afternoon trading, reflecting investor concerns about the company's future profitability, particularly in light of the recent changes in healthcare policy.
- Acquisition Potential Diminished: Kalia noted that while Inspire may have been considered a potential acquisition target, the current timing, rationale, and economic factors could raise questions about the feasibility of such a move, impacting the company's strategic direction.
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSP is 145.31 USD with a low forecast of 91.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 82.010
Low
91.00
Averages
145.31
High
180.00
Current: 82.010
Low
91.00
Averages
145.31
High
180.00
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company is focused on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. It has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The Company sells its Inspire system to hospitals and ambulatory surgery centers (ASCs) in the United States (U.S.) and in select countries in Europe and Japan through a direct sales organization and sells its Inspire system in Singapore and Hong Kong through distributors. Its direct sales force engages in sales efforts and promotional activities focused on ear, nose and throat (ENT) physicians and sleep centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Inspire Medical Systems Board Under Investigation, 2025 Earnings Guidance Cut by Over 80%
- Board Investigation: The Law Offices of Frank R. Cruz is investigating whether the board of directors of Inspire Medical Systems breached its fiduciary duties to shareholders, potentially exposing them to financial losses.
- Product Launch Delay: The launch of the Inspire V sleep apnea device is facing an 'elongated timeframe' due to several issues, including many centers failing to complete necessary training and contracting criteria, which impacts device purchase and implantation.
- Earnings Guidance Cut: The company has drastically reduced its 2025 earnings guidance from $2.20-$2.30 per share to $0.40-$0.50 per share, reflecting severe impacts from weak market demand and excess inventory.
- Stock Price Plunge: On August 5, 2025, Inspire's stock price plummeted by $42.04, or 32.4%, closing at $87.91 per share, significantly harming investor interests.
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