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Insmed (INSM) has drawn investor attention after a strong 1 year total return of 87.6%, alongside a decline of 24.6% over the past 3 months and a decline of 7.8% over the past month.
See our latest analysis for Insmed.
Despite a very large 3 year total shareholder return, recent share price returns tell a different story, with the stock giving back some gains over the past quarter as investors reassess growth potential and risk around Insmed’s pipeline and valuation.
If Insmed’s recent swings have you thinking about where else growth stories might emerge in healthcare, it could be worth scanning our screener of 25 healthcare AI stocks as a starting point for fresh ideas.
With Insmed sharing a strong 1 year total return alongside recent pullbacks, and trading below some intrinsic and analyst estimates, the real question is whether the current price offers upside or whether the market already reflects future growth.
Insmed’s most followed valuation storyline points to a fair value of $215.10 a share versus the last close at $148.75. This places significant focus on how its respiratory platform and late stage assets develop.
The analysts have a consensus price target of $97.124 for Insmed based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $110.0, and the most bearish reporting a price target of just $89.0.
Want to see what sits behind that gap between current price, analyst targets and a higher fair value line? The narrative focuses on rapid revenue expansion, a marked shift in margins and a premium future earnings multiple that many investors usually associate with mature commercial franchises. Curious which assumptions need to align for those numbers to work? The full story connects each of those moving parts in detail.
Result: Fair Value of $215.10 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there is still clear risk that regulatory delays for brensocatib, or tougher payer access than analysts expect, could quickly challenge this underpriced growth story.
Find out about the key risks to this Insmed narrative.
While the popular storyline points to Insmed trading below fair value, the picture looks different when you look at the P/B ratio. At 33.6x versus 7.8x for peers and 2.6x for the wider US biotech group, the current price leans heavily on future success. That raises the question: how comfortable are you with that premium?
See what the numbers say about this price — find out in our valuation breakdown.
If you look at the numbers and reach a different conclusion, or simply prefer to build your own view from the ground up, you can easily create a custom Insmed story in just a few minutes. After that, you can stress test it with your own assumptions, Do it your way
A great starting point for your Insmed research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
If Insmed has sharpened your thinking, do not stop here, you could miss other opportunities that better fit your goals and risk comfort.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include INSM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
















