Insmed's (INSM) Q2 results and management commentary reinforced confidence in Brinsupri's commercial performance and pipeline potential, with the stock's rebound appearing appropriate after recent weakness, RBC said in a note Thursday.

RBC said Brinsupri generated $309 million in global revenue, beating its $289 million estimate and the Street's $279 million forecast, prompting the company to raise 2026 guidance to between $1.25 billion and $1.4 billion.

The brokerage now expects Brinsupri to generate $1.36 billion in 2026 revenue.

RBC said TPIP development remains on track across PH-ILD, PAH, PPF and IPF, while the company ended the quarter with $1.16 billion in cash and reiterated its expectation of becoming cash flow positive in 2027.

RBC maintained the company's outperform rating and $195 price target.

Price: 127.21, Change: -5.34, Percent Change: -4.03