Is Inspire Medical Systems (INSP) the Top Medical Technology Stock to Buy According to Analysts?

Inspire Medical Systems (NYSE: INSP) has been making waves in the medical technology sector, with analysts bullish on the company's prospects. As of March 4, 2025, INSP's stock price stands at $181.08, with a price-to-earnings (PE) ratio of 100.6. This article explores whether INSP is the best medical technology stock to buy, based on analyst ratings, price targets, and valuation metrics.



Analyst Ratings and Price Targets

Analysts have been increasingly positive about INSP, with B of A Securities upgrading their rating to 'buy' and raising their price target to $255.00. This represents a potential 50.62% upside from the current price, indicating analysts' confidence in the company's future performance. The average 12-month price target for INSP is $232.93, with a dispersion of 10.4%, suggesting a broad consensus among analysts that the stock is undervalued.



Valuation Metrics

INSP's PE ratio of 100.6 is higher than the peer average of 67.5x and the industry average of 30.0x. This suggests that analysts expect the company to grow faster than its peers and the industry average. However, INSP's high PE ratio also indicates that the stock may be relatively expensive compared to its earnings.

When compared to its peers, INSP is more expensive based on its Price-To-Earnings Ratio (100.4x) compared to the peer average (67.5x). Similarly, INSP is expensive compared to the US Medical Equipment industry average (28.9x). However, INSP's high PE ratio could be justified if the company can deliver on its expected growth potential.



Investment Implications

The positive analyst ratings, high price targets, and expected growth potential suggest that INSP may be an attractive investment opportunity. However, the high PE ratio indicates that the stock may be relatively expensive, which could limit its upside potential in the short term. Investors should carefully consider these factors and monitor the company's performance to make an informed decision.

In conclusion, Inspire Medical Systems (NYSE: INSP) appears to be a promising medical technology stock, with analysts bullish on the company's prospects. While the stock may be relatively expensive based on its PE ratio, its expected growth potential and positive analyst ratings suggest that it could be an attractive investment opportunity. However, investors should carefully consider the company's valuation and monitor its performance before making a decision.