Robert W. Baird analyst Jeff Johnson maintained a Buy rating on InMode (INMD – Research Report) on November 2 and set a price target of $32.00.
Jeff Johnson’s Buy rating for InMode (INMD) is derived from a multitude of factors. Despite the recent deceleration in INMD’s growth, Johnson still believes in the company’s potential due to several enduring long-term positives. These include INMD’s unique technology, substantial overseas market penetration opportunities, and continuing gross margin benefits. Johnson anticipates that the market will eventually shift its focus back to these advantages. Considering the stock is currently trading at approximately 8x next twelve months earnings and 5x next twelve months EBITDA, he believes that the potential rewards outweigh the risks, even when considering the current uncertainties.
Johnson also touches on two key points that are likely to be the focus for investors. Firstly, he examines the cause behind the slowdown in 3Q, attributing it to a combination of seasonal factors, increased financing rates and stricter leasing standards. Despite the soft U.S. system demand, he expects the U.S. system/platform revenue to decline again on a year-on-year basis in 4Q-23 and remain relatively stable in 2024. Secondly, Johnson discusses the 2024 outlook. He notes that management anticipates global revenue growth of approximately $40-$50M, assuming no significant deterioration in market fundamentals. Despite this representing only a single to low double-digit year-on-year global revenue growth, Johnson believes that the shares seem to be pricing in an even worse near to intermediate-term outlook.
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InMode (INMD) Company Description:
InMode Ltd. designs, develops, manufactures and markets minimally-invasive aesthetic medical products. It also designs, develops, manufactures and markets non-invasive medical aesthetic products that target a array of procedures including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture and superficial benign vascular and pigmented lesions. The company was founded by Moshe Mizrahy and Michael Kreindel on January 2, 2008 and is headquartered in Yokneam, Israel.
Read More on INMD:
- InMode downgraded to Neutral from Buy at UBS
- InMode sees FY23 adjusted EPS $2.53-$2.57, consensus $2.62
- InMode reports Q3 adjusted EPS 61c, consensus 64c
- InMode Reports Third Quarter 2023 Financial Results; Quarterly Revenue of $123.1M Represents 2% Year-Over-Year Growth
- 5 Top Small-Cap Stocks to Buy Now, According to Analysts – October 2023
