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Investing.com - Canaccord Genuity has raised its price target on InMode Ltd. (NASDAQ:INMD) to $16.00 from $14.00 while maintaining a Hold rating on the stock. The medical technology company currently trades at an attractive P/E ratio of 6.3x and maintains impressive gross margins of 80%, according to InvestingPro data.
The price target increase reflects recent stock price appreciation and higher estimates for the medical technology company, according to Canaccord Genuity’s analysis released Friday.
The research firm has reduced its discount to the comparison group from 50% to 30%, indicating a slightly more favorable outlook on InMode’s valuation relative to peers.
Canaccord Genuity’s new price target is based on a 1.4x multiple on its 2026 sales estimate of $384.5 million for InMode, representing a 30% discount to the firm’s 2025 estimated median small-cap MedTech comparison group.
Despite the price target increase, the firm has maintained its Hold rating on InMode stock, suggesting a neutral stance on the company’s near-term growth prospects.
In other recent news, InMode Ltd . reported preliminary third-quarter revenue exceeding analyst expectations, with figures ranging from $92.5 million to $93.0 million. This performance surpassed the consensus estimate of $88.1 million, despite a 29% year-over-year decline in revenue. Needham has maintained a Hold rating on the stock following these results. Additionally, InMode kept its full-year guidance unchanged, which contributed to a positive market reaction. Meanwhile, DOMA Perpetual Capital Management LLC, a significant shareholder, has urged the company to execute a 20% share buyback over the next two quarters. The investment firm is advocating for a 10% repurchase in both Q4 2025 and Q1 2026. On another note, BTIG maintained its Neutral rating on InMode after the company reported preliminary second-quarter revenue below expectations and lowered its full-year guidance. The second-quarter revenue was expected to be between $95.4 million and $95.5 million, missing the consensus estimate of $99.2 million.
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