- MedTech company Inspire Medical Systems ( NYSE: INSP ) added ~7% Tuesday after KeyBanc Capital Markets launched its coverage with an Overweight recommendation citing its growth prospects in an underpenetrated market.
- The analysts led by Matthew Mishan argue that Inspire Medical ( INSP ), which markets a neurostimulation technology called Inspire system to treat obstructive sleep apnea (OSA) is "well-positioned to meet or exceed revenue growth expectations."
- Issuing a $287 per share target on the stock, the team highlights the low penetration of its approach for OSA in a market with a high number of potential patients and multiple barriers to entry that could offer durable competitive advantages.
- "Various catalysts appear already in place to support a 30%+ growth outlook," the analysts wrote, using a ~85% gross margin to predict strong operating leverage and expecting the stock to trade at a premium to high-growth peers.
- Wall Street has remained bullish on Inspire Medical ( INSP ) stock, with an average rating of Buy from analysts in line with Seeking Alpha Author ratings. However, Seeking Alpha's Quant System , which consistently beats the market, rated INSP as a Hold.
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Inspire Medical nears eight-month high as KeyBanc issues bullish call