Needham Upgrades Inogen (INGN) to Buy

On May 22, Needham analysts upped Inogen, Inc. (NASDAQ:INGN)’s stock from “Hold” to “Buy”, offering a price objective of $12.00. The upgrade stems from the belief that the company’s efforts under new management are not being given due weightage.

Inogen, Inc. (NASDAQ:INGN), a medical technology company, has exhibited a return to positive mid-single-digit revenue growth. Notably, in Q1 2025, the company’s total revenue came in at $82.3 million, reflecting a rise of 5.5% YoY, thanks to elevated demand trends from international and domestic business-to-business customers.

A close-up of a medical technician wearing lab coat and a face mask preparing a portable oxygen concentrator for a patient.

Needham analysts opine that the revenue growth is expected to accelerate in H2 2025 and into 2026. This positive outlook is backed by Inogen, Inc. (NASDAQ:INGN)’s improved margins and strategic steps adopted by management in a bid to diversify its portfolio into a broader respiratory device business.

The diversification strategy is being regarded as a critical factor in Inogen, Inc. (NASDAQ:INGN)’s potential success. Total gross margin in Q1 2025 sat at 44.2%, implying an improvement of 15 bps as compared to 44.1% in the prior-year period. This was aided by lower warranty expense, which was partially offset by the impact of channel and customer mix. Overall, Needham’s upgrade exhibits confidence in the company’s turnaround strategy and growth prospects.

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Disclosure: None.