Inogen shares upgraded to Buy at Needham, $12 price target set

On Thursday, Needham analysts raised their rating on Inogen, Inc (NASDAQ:INGN) stock from Hold to Buy, setting a price target of $12.00. The upgrade reflects the analysts’ belief that the company’s recent efforts under new management have not been fully appreciated in its current share price of $5.96, which sits near its 52-week low of $5.70. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

Inogen has demonstrated a return to positive mid-single digit revenue growth, with InvestingPro data showing a 5.73% revenue increase in the last twelve months to $340 million. Needham analysts anticipate that this growth could accelerate in the second half of 2025 and into 2026. The firm’s positive outlook is further supported by Inogen’s improved margins, with a gross profit margin of 46.11%, and strategic steps taken by management to diversify the company’s portfolio into a broader respiratory device business.

The analysts highlighted that Inogen has introduced several new growth drivers, which could contribute to the company’s performance in the near future. This diversification strategy is seen as a key factor in Inogen’s potential success.

Furthermore, Needham’s analysis suggests that Inogen’s shares are currently undervalued. The company is trading at a 2026 estimated enterprise value-to-sales ratio of 0.2x and a price-to-book ratio of 0.81x. Inogen’s financial position is also noted as strong, with a healthy current ratio of 3.07x and minimal debt-to-equity of 0.10. Get deeper insights into Inogen’s valuation and 8 additional key ProTips with a subscription to InvestingPro, including exclusive access to comprehensive Pro Research Reports covering 1,400+ US stocks.

In summary, Needham’s upgrade to a Buy rating signifies their confidence in Inogen’s turnaround strategy and its prospects for growth. The $12.00 price target represents their valuation of the company based on these positive developments, though investors should note the stock’s beta of 1.64 indicates higher volatility than the broader market.

In other recent news, Inogen Inc . reported its first-quarter 2025 earnings, revealing a notable improvement in financial performance. The company posted a smaller-than-expected loss per share at -$0.11, compared to the forecast of -$0.47. Inogen’s revenue for the quarter reached $82.3 million, surpassing the expected $79 million. This revenue marks a 5.5% increase year-over-year, indicating strong growth, particularly in the business-to-business segment. The company’s gross margin improved to 44.2%, and its adjusted EBITDA turned positive, a significant shift from the negative $7.6 million reported in the prior year.

Inogen’s strategic initiatives, including new product launches and collaborations, have contributed to these positive results. The company has set its full-year 2025 revenue guidance between $352 million and $355 million, expecting growth of 5-6%. Analysts have noted that Inogen’s efforts in improving financial health and operational efficiency are evident in these recent developments. Additionally, the company is progressing with its collaboration with UL Medical (TASE:BLWV), aiming to expand its market reach in China and the United States. These initiatives underscore Inogen’s focus on driving growth and profitability in the coming quarters.

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