Declining Sales In Challenged Oxygen Market Weighs On Inogen's Margins, Analyst Downgrades Stock
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Mike Matson downgraded Inogen, Inc (NASDAQ:INGN) to Hold from Buy, with a price target of $26. Inogen is acquiring Physio-Assist SAS for $32 million, a move that is expected to diversify its respiratory portfolio and expand its international market opportunities. However, the deal is not expected to impact Inogen's revenue growth until 2025. Matson notes that Inogen's margins have deteriorated due to inflationary headwinds, sales channels, and other investments. The analyst also lowered revenue estimates for FY23 and FY24.
July 14, 2023 | 5:04 pm
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Inogen's stock has been downgraded by Needham analyst Mike Matson due to declining sales and deteriorating margins. The company's acquisition of Physio-Assist is not expected to impact revenue growth until 2025.
The downgrade by Needham analyst Mike Matson is based on declining sales and deteriorating margins at Inogen. The company's acquisition of Physio-Assist, while expected to diversify its respiratory portfolio and expand its international market opportunities, is not expected to impact revenue growth until 2025. This suggests that the company's financial performance may continue to be under pressure in the short term, which could negatively impact its stock price.
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