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On Tuesday, Canaccord Genuity maintained its Hold rating on InMode Ltd . (NASDAQ:INMD) with a steady price target of $17.00. The decision follows InMode’s preliminary financial results for the first quarter of 2025, which revealed revenues between $77.2 million and $77.5 million. This figure falls short of Canaccord Genuity’s and the consensus estimates, which were $90.4 million and $82.2 million, respectively. The reported revenue indicates a year-over-year growth of minus 3.8% to minus 3.5% for the quarter. According to InvestingPro data, the company maintains a strong financial health score of 3.38 (rated as "GREAT"), with a robust balance sheet showing more cash than debt.
In addition to the revenue shortfall, InMode’s preliminary non-GAAP gross margin (GM) for the first quarter is expected to be between 78% and 79%, which is below Canaccord’s projection of 80.4%. Despite these figures, InMode has chosen to maintain its full-year 2025 guidance, anticipating revenues in the range of $395 million to $405 million. This forecast suggests a modest annual growth of 0.1% to 2.8%. Trading at a P/E ratio of 6.57 and an EV/EBITDA of 4.06, InMode appears undervalued based on InvestingPro’s Fair Value analysis.
Canaccord Genuity has adjusted its model for InMode to reflect the latest data, while also considering the ongoing economic challenges that could negatively impact both provider and consumer demand. These challenges include new tariffs and market uncertainties. The firm notes that InMode’s consistent full-year guidance implies the need for a significant increase in performance throughout the remainder of the year, which may prove difficult in the face of persistent macroeconomic headwinds.
Reflecting on InMode’s history of revising guidance downward in 2024 and the current economic climate, Canaccord Genuity has chosen to model full-year 2025 metrics below the company’s provided guidance range. This conservative approach takes into account the potential for continued revisions and external pressures on the market. The firm reiterates its Hold rating and $17 price target for InMode stock, signaling a cautious outlook on the company’s performance in the near term.
In other recent news, InMode Ltd. reported its financial results for the fourth quarter of 2024, which fell short of market expectations. The company announced earnings per share of $0.42, missing the forecasted $0.59, and revenue of $97.85 million, below the anticipated $114.23 million. For the full year, revenue decreased by 20% compared to 2023, totaling $394.8 million. Despite these challenges, InMode maintains its 2025 revenue guidance between $395 million and $405 million. Jefferies recently upgraded InMode’s stock rating from Hold to Buy, although it reduced the price target to $15 from $16, reflecting a cautiously optimistic outlook. The company has also launched new products and made management changes, which are expected to support its position in the aesthetic market. Analysts from Jefferies have noted that achieving the 2025 revenue guidance could be challenging given the current economic climate.
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