(Updated - May 22, 2026 6:16 AM EDT)

BofA Securities analyst Travis Steed downgraded Inspire Medical Systems (NYSE: INSP) from Neutral to Underperform with a price target of $39.00.

The analyst comments "We downgrade INSP to Underperform from Neutral and lower our PO to $39 from $53 (1x ’26E rev vs 1.5x prior). Without a smooth and consistent coding pathway for centers, we see higher risk to estimates. We do not see the stock working until there’s more clarity on coding. INSP has cut 2026 guidance significantly, but INSP’s guidance assumes things are improving now and 2027 revenues will grow. It is tough for us to call a sustainable improvement until there’s an official code for Inspire V, which is at best Jan 1, 2028, but increasingly looks like it could take even longer. We lower our 2027E organic growth estimate to ~0% (rev $854m from $863m) and 2027E EPS from $1.15 to $1.00. 2028E revenue goes from $917m to $907m and EPS from $1.35 to $1.28."

For an analyst ratings summary and ratings history on Inspire Medical Systems click here. For more ratings news on Inspire Medical Systems click here.

Shares of Inspire Medical Systems closed at $44.74 yesterday.