Inspire Medical Systems (INSP): Revisiting Valuation After Inspire V Launch Setbacks and Class Action Lawsuits
Inspire Medical Systems (INSP) has been under pressure after revealing major stumbling blocks in the Inspire V launch, including underprepared treatment centers, billing software glitches, and excess inventory weighing on demand and earnings expectations.
See our latest analysis for Inspire Medical Systems.
The latest Inspire V setbacks come after a volatile stretch in which a sharp selloff following guidance cuts and multiple securities class actions left a 1 year total shareholder return of about negative 29 percent. At the same time, a recent 1 month share price return above 65 percent hints that short term momentum is trying to repair longer term damage.
If this roller coaster has you rethinking your healthcare exposure, it could be a good moment to explore other healthcare stocks that pair medical innovation with more stable sentiment.
With lawsuits mounting, guidance slashed, and the share price still down sharply over one year despite a furious recent rebound, are investors staring at a mispriced recovery story or a market that already anticipates future growth?
Most Popular Narrative: 16.2% Overvalued
With Inspire Medical Systems last closing at $136.81 versus a narrative fair value of $117.73, the storyline leans toward a stretched valuation built on optimistic long term assumptions.
The analysts have a consensus price target of $144.533 for Inspire Medical Systems based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $230.0 and the most bearish reporting a price target of $97.0.
Want to see what kind of revenue runway and margin lift could justify paying today’s premium for tomorrow’s profits? Unpack the full playbook behind this valuation.
Result: Fair Value of $117.73 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering Inspire V rollout delays and potential reimbursement or competitive shocks could still derail the upbeat growth and valuation narrative.
Find out about the key risks to this Inspire Medical Systems narrative.
Build Your Own Inspire Medical Systems Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in minutes using Do it your way.
A great starting point for your Inspire Medical Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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