Oppenheimer Upgrades Inspire Medical Systems (INSP) to Outperform

Oppenheimer analyst Suraj Kalia upgraded Inspire Medical Systems (NYSE: INSP) from Perform to Outperform with a price target of $175.00.

The analyst comments "We are tactically upgrading INSP to an Outperform rating (from Perform)/$175PT: 1) In our view, CMS has erred on mapping HGNS facility rate to higher levels, violating its own cost input protocol for rate-setting. 2) Company commentary suggests ASP increases now in play. How the chess pieces move on the table will be fascinating to watch. 3) If ASP's are raised ‾20-40%, revs. increase ‾30-50% (units +10%), GM's +200-350 bps; and EPS increases to ‾$6.50-$11.50. 4) Question though remains if this is durable. Our view is it is not, and CMS reverses itself in the CY27 OPPS proposal due July 2026, setting up CY26 drama in this name."

For an analyst ratings summary and ratings history on Inspire Medical Systems click here. For more ratings news on Inspire Medical Systems click here.

Shares of Inspire Medical Systems closed at $136.81 yesterday.

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