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Insmed (INSM): Assessing Valuation After Nasdaq-100 Inclusion and Strong Analyst Optimism

Simply Wall St · 1d ago

Insmed (INSM) is joining the Nasdaq 100 on December 22, 2025, a move that can prompt additional demand from index tracking funds and draw a brighter spotlight on the company from institutional investors.

See our latest analysis for Insmed.

That Nasdaq 100 promotion caps a remarkable run, with Insmed’s share price returning 181.52 percent year to date and a three year total shareholder return of 944.67 percent, suggesting momentum is firmly building as investors reassess its growth runway.

If Insmed’s surge has you looking for what else might be setting up for a strong run, it could be worth exploring healthcare stocks as potential next ideas.

Yet with the stock already up sharply and trading below, but not far from, rising analyst targets, the real question is whether Insmed still trades at a discount to its long term potential or if markets are already pricing in future growth.

Most Popular Narrative Narrative: 11.6% Undervalued

With the narrative fair value sitting modestly above Insmed’s last close, the current price implies investors are not fully embracing its long range potential.

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.

Read the complete narrative.

Curious how a loss making biotech earns a premium style valuation, with sky high growth, richer margins and a punchy future earnings multiple baked in? The narrative breaks down the bold revenue ramp, the step change in profitability and the valuation leap required to make it all add up. Want to see exactly which assumptions drive that gap between today’s price and the projected upside, and how far sentiment has to stretch to get there? Read on to see the full playbook behind this fair value call.

Result: Fair Value of $222.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in brensocatib’s U.S. approval or tougher than expected payer negotiations could easily knock this fair value story off course.

Find out about the key risks to this Insmed narrative.

Build Your Own Insmed Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Insmed research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.