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B.Riley initiated coverage of Inogen, Inc (NASDAQ:INGN) on Monday with a buy rating and a $14.00 price target, citing the portable oxygen therapy company’s turnaround potential. The stock, currently trading at $6.25, appears undervalued according to InvestingPro analysis, with a price-to-book ratio of just 0.85.
The research firm identified Inogen as a global leader in portable oxygen concentrators (POCs) that convert ambient air into medical-grade oxygen, providing greater mobility for chronic obstructive pulmonary disease (COPD) patients compared to traditional oxygen tanks. The company maintains strong financial flexibility with a healthy current ratio of 3.07 and minimal debt-to-equity of 0.10.
B.Riley highlighted the company’s management transition in the fourth quarter of 2023, which focused on reducing friction among sales channels and implementing cost-management strategies to drive sustainable and profitable growth.
The firm noted Inogen’s financial improvements, pointing out that fiscal year 2024 adjusted EBITDA improved 75% year-over-year to a loss of $9.5 million, with the company expecting to reach adjusted EBITDA breakeven in fiscal year 2025 and positive figures thereafter.
B.Riley described Inogen as "deeply undervalued" and expressed encouragement about the company’s turnaround momentum, noting that Inogen has beaten Wall Street’s estimates for both top and bottom lines for five consecutive quarters.
In other recent news, Inogen Inc . reported its first-quarter 2025 earnings, revealing a significant improvement in financial performance. The company posted a smaller-than-expected loss per share of -$0.11, outperforming the forecasted -$0.47, and exceeded revenue expectations with $82.3 million, surpassing the anticipated $79 million. This marks a 5.5% year-over-year revenue increase, driven by strong growth in the business-to-business segment. Inogen also reported a positive adjusted EBITDA of $36,000, a notable improvement from the negative $7.6 million recorded in the prior year. Additionally, Needham analysts upgraded Inogen’s stock to a Buy rating, with a price target set at $12, citing the company’s strategic efforts under new management and the introduction of several new growth drivers. The analysts believe Inogen’s shares are undervalued, supported by a strong financial position with $123 million in cash and no debt. Inogen’s recent collaboration with UL Medical (TASE:BLWV) aims to expand its product portfolio and geographic reach, further supporting its strategic priorities.
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