Needham analyst Mike Matson upgraded Inogen, Inc (NASDAQ:INGN) from Hold to Buy, with a price forecast of $12.
On May 7, the company reported its first-quarter results.
Total revenue in the quarter was $82.3 million, an increase of 5.5% from the prior-year period, or 7.1% at constant currency rates, due to higher demand from international and domestic business-to-business customers.
Matson highlighted the turnaround efforts led by the company’s new management team, which remains underappreciated by the market.
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The company has returned to mid-single-digit revenue growth, with expectations for further acceleration in the second half of 2025 and into 2026.
Matson also notes improvements in margin performance and highlights management’s strategy to expand Inogen’s focus beyond its core offerings into a more diversified respiratory device portfolio, which introduces multiple new avenues for growth.
He added that management anticipates nearing adjusted EBITDA breakeven in 2025, which he views as a positive indicator of progress.
Matson writes that the decline in Inogen’s direct-to-consumer sales has primarily stemmed from a smaller DTC sales force.
The analyst also projects margins to improve further as direct-to-consumer sales stabilize or return to growth, especially after the impact of the sales force reduction is fully reflected in the fourth quarter of 2025.
Price Action: INGN shares are trading higher by 14% to $6.795 at last check Thursday.
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