Evaluating Insmed (INSM) After Its Strong 2024 Share Price Surge and Rare Disease Pipeline Progress
Insmed (INSM) has quietly turned into one of 2024’s stronger biotech performers, with the stock up about 192% year to date and roughly 38% over the past 3 months.
See our latest analysis for Insmed.
That surge in 2024 share price returns sits alongside a 3 year total shareholder return of more than 950 percent. This suggests investors are steadily repricing Insmed as its late stage rare disease pipeline clears key milestones.
If Insmed’s run has you rethinking what could be next in healthcare, this is a good moment to explore other high potential names via healthcare stocks.
With shares already discounting blockbuster potential yet still trading below some intrinsic estimates, the real question now is whether Insmed remains an underappreciated growth story or if the market is fully pricing in its rare disease pipeline.
Most Popular Narrative: 8.4% Undervalued
Insmed’s most followed valuation narrative places fair value at $222.78 per share versus a last close of $204, framing a modest upside from here.
The analysts have a consensus price target of $97.124 for Insmed 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 $110.0, and the most bearish reporting a price target of just $89.0.
Curious how a still loss making biotech earns a premium style valuation? Revenue compounding, margin lift and a rich future earnings multiple sit at the heart of this narrative. Want to see what those assumptions really look like in numbers?
Result: Fair Value of $222.78 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, elevated expectations face real tests, from potential FDA review delays for brensocatib to tougher payer negotiations that could slow early launch momentum.
Find out about the key risks to this Insmed narrative.
Build Your Own Insmed Narrative
If you see things differently or want to stress test the assumptions yourself, you can build a complete Insmed view in minutes: Do it your way.
A great starting point for your Insmed research is our analysis highlighting 2 key rewards and 2 important warning signs 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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