Inspire Medical Systems Confronts Reimbursement Headwinds as Price Target Falls to $95
Stifel cut Inspire’s price target to $95 from $110 after lowering 2026 revenue guidance due to reimbursement challenges tied to CPT code 64582 with a –52 modifier. Baird and Wells Fargo downgraded ratings with a $70 target while management trimmed 2026 revenue outlook to 4–10% despite 12% Q4 revenue growth.
1. Price Target Revisions
Stifel lowered its price target on Inspire Medical Systems to $95 from $110 while maintaining a Buy rating. On the same day, Baird cut its rating to Neutral and Wells Fargo downgraded to Equal Weight, reducing its price target to $70 from $145.
2. Guidance and Reimbursement Challenges
Management revised its 2026 revenue growth outlook down to 4–10% from about 10–11%, citing persistent reimbursement headwinds linked to the new CPT code 64582 billed with a –52 modifier that could reduce physician payments by 10–50%.
3. Q4 Financial Performance
Inspire reported Q4 revenue growth of 12% year-over-year with earnings of $1.65 per share and margins expanding to 17.5%, underscoring continued profitability despite the more cautious 2026 guidance.