Insmed (INSM) may exceed its 2026 revenue outlook of at least $1 billion for non-cystic fibrosis bronchiectasis drug Brinsupri as the US market opportunity expands, Morgan Stanley said Thursday in a report.

Management outlined several avenues to increase the drug's initial US total addressable market, suggesting potential upside to Morgan Stanley's estimate of more than $5 billion in peak sales, the report said. These include broadening use among diagnosed patients and refining estimates of the undiagnosed population.

Insmed also highlighted efforts to encourage evaluation of possible bronchiectasis among the roughly 32 million people with chronic obstructive pulmonary disease or asthma, Morgan Stanley said.

This year will be critical for "improving visibility into Brinsupri's long-term opportunity amid multiple catalysts," the report said.

Morgan Stanley raised its price target on Insmed's stock to $166 from $162 and maintained its equal weight rating.

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