Inspire Medical Systems Inc. (NYSE:INSP) is one of the best medical technology stocks to invest in. On February 12, Stifel lowered its price target on Inspire Medical Systems Inc. (NYSE:INSP) to $95 from $110 and maintained a Buy rating on the stock. The decision followed Inspire’s revision to its 2026 guidance, which Stifel linked to persistent reimbursement challenges affecting the company’s operations and billing environment.
Stifel said the situation has reached a “worst‑case scenario,” with the 64582 code billed using a ‑52 modifier. This change further cuts physician pay for a procedure that is already underpaid.
Despite cutting the price target, Stifel observed that Inspire’s projected 2026 revenue growth remains in the high single digits at the midpoint of guidance. Also, Inspire increased its EPS estimates for 2026-2031, which Stifel said demonstrates potential leverage in the company’s business model. The firm also noted that Inspire’s historical growth has been strong; the company has experienced a multi-year compound annual growth rate.
On the same day, February 12, Baird and Wells Fargo downgraded their ratings on Inspire. The firms pointed to ongoing uncertainty around physician reimbursement and a weaker growth outlook for 2026.
Baird cut its rating to Neutral, saying recent reimbursement developments have made it more difficult to see a clear path to higher utilization and new account growth. This clouds visibility into future performance, said Baird.
On its part, Wells Fargo lowered its rating to Equal Weight from Overweight and reduced its price target to $70 from $145. The firm cited ongoing uncertainty related to physician fees tied to the rollout of the company’s Inspire V system.
Inspire’s Q4 revenue rose 12% year over year, with earnings of $1.65 per share beating expectations and margins improving to 17.5%. However, management cut its 2026 revenue growth outlook to 4–10% from about 10%–11%, citing reimbursement changes tied to a new CPT code with a ‑52 modifier that could reduce physician payments by 10%–50%.
Analysts warned this uncertainty may slow procedure volumes and new account openings, though Inspire still expects to stay profitable with margins of 6%–8%. Wells Fargo noted some doctors may stick with Inspire IV, which avoids the reimbursement risk, limiting near‑term demand for the newer system.
Inspire Medical Systems Inc. (NYSE:INSP) develops and commercializes medical technology solutions for obstructive sleep apnea. Its primary product is the Inspire system, a neurostimulation device implanted to deliver mild hypoglossal nerve stimulation, keeping the airway open during sleep.
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Disclosure: None. This article is originally published at Insider Monkey.
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