Inspire Medical price target lowered to $217 from $280 at Truist

Truist analyst Richard Newitter lowered the firm’s price target on Inspire Medical to $217 from $280 and keeps a Buy rating on the shares as part of a broader research note previewing Q2 results in the MedTech sector. Across the market cap, there continues to be crowding in the strongest growth stories with a widening performance and valuation gap between “haves” and “have nots”, but while this could create some profit-taking, dips in these names will get bought if fundamentals are moving in the right direction, the analyst tells investors in a research note. For Inspire, its current valuation should be closer to its peer group given its faster revenue growth and above-average gross margins, though the reduced price target accounts for potential out-year total addressable market realization risk should GLP1 trialing cause some “drop-out of the patient funnel” and the potential for further U.S. utilization growth deceleration as it may take time for capacity expansion drivers to have an impact, the firm added.