In a report released yesterday, Caitlin Cronin from Canaccord Genuity maintained a Hold rating on InMode (INMD – Research Report), with a price target of $17.00.
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Caitlin Cronin’s rating is based on several factors influencing InMode’s current market position. The company has faced persistent demand challenges due to macroeconomic conditions, with consumer and provider demand for its products waning amidst inflationary pressures. Recent Federal Reserve rate cuts have been promising, but further reductions are needed before financing rates for aesthetic equipment become more accessible, which could delay a rebound in demand for InMode’s higher-cost bipolar RF treatments compared to traditional laser treatments.
Cronin notes that InMode’s strong balance sheet allows it to remain proactive, with plans to launch new platforms and conduct share buybacks, which could limit downside risks. However, the return to growth is expected to be gradual, with a measured improvement in the risk/reward profile of the stock. The company’s recent performance, including Q4 revenues below expectations and significant organizational changes, supports Cronin’s Hold rating, as the path to recovery might take quarters rather than months.
Cronin covers the Healthcare sector, focusing on stocks such as Vericel, REPRO-MED Systems, and InMode. According to TipRanks, Cronin has an average return of 25.4% and a 78.79% success rate on recommended stocks.