Inogen Upgraded to Buy from Hold at Needham, $12 Price Target Set

Inogen has been upgraded to Buy from Hold at Needham with a $12 price target. The firm believes the new management team has made significant progress in turning around the company, which is reflected in its return to positive mid-single digit revenue growth. Needham also sees potential for accelerated growth in the second half of 2025 and 2026, as well as progress in improving margins and diversifying into a broader respiratory device business. The stock is considered undervalued at current levels.

Inogen Inc. (INGN) has received a significant upgrade from Needham, moving from Hold to Buy with a $12 price target. The upgrade is based on the firm's assessment of the company's turnaround progress under new management, which has led to positive mid-single-digit revenue growth. Needham expects this growth to accelerate in the second half of 2025 and into 2026, driven by improvements in margins and a broader focus on respiratory devices [1].

The upgrade comes after Inogen reported its first-quarter results, showing a 5.5% increase in total revenue to $82.3 million. The growth was attributed to higher demand from both international and domestic business-to-business customers [1]. Needham highlighted the turnaround efforts led by the new management team, which remains underappreciated by the market. The analyst also noted improvements in margin performance and the company's strategy to expand its focus beyond its core offerings into a more diversified respiratory device portfolio [1].

In addition to the revenue growth, Needham expects Inogen to achieve adjusted EBITDA breakeven in 2025. The analyst projects further margin improvements 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 [1].

INGN shares are currently trading higher by 14% at $6.795, following the upgrade announcement [1]. The stock is considered undervalued at current levels, with Needham's price target indicating significant upside potential.

References:
[1] https://www.benzinga.com/markets/equities/25/05/45571728/inogen-upgraded-analyst-sees-growth-ebitda-breakthrough