Inspire Medical Systems: Investors Should Sleep Better From Here Onwards

(7min)

Summary

  • Inspire Medical's growth remains strong, with 2025 seen as a transition year due to the Inspire V launch, causing near-term margin volatility.
  • Valuations look more attractive: shares trade at just 4x sales, a significant discount from previous highs, while the business is profitable and growing.
  • Concerns about GLP-1 drugs impacting demand are likely overblown, as these patients were not ideal candidates for Inspire's therapy anyway.
  • Despite short-term choppiness, I remain upbeat on Inspire's long-term potential, given continued growth, profitability, and supportive valuations.
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Man snoring in bed

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In the fall of last year, I believed that the risk-reward proposition for Inspire Medical (NYSE:INSP) was improving after shares were lagging, the business became profitable and the FDA granted approval for a new device.

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This article was written by

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The Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of INSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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