Caitlin Cronin, an analyst from Canaccord Genuity, maintained the Hold rating on InMode (INMD – Research Report). The associated price target was lowered to $15.00.
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Caitlin Cronin’s rating is based on several factors impacting InMode’s financial outlook. Despite slightly surpassing preliminary Q1 results and executing a share buyback program, InMode’s performance fell short of initial expectations, leading to a reiteration of the Hold rating. The company faces persistent macroeconomic challenges, including inflationary pressures and potential tariff threats, which contribute to uncertainty in the market. These factors have led to a decline in consumer and provider demand, particularly in the U.S., and have resulted in a more balanced revenue mix between domestic and international markets.
InMode’s operating margins are expected to decline due to a higher mix of international revenues and anticipated tariffs on Israeli imports. While revenue guidance for 2025 remains unchanged, it is considered optimistic, especially given the Q1 revenue miss. If conditions do not improve, InMode may need to revise its revenue expectations downward. The company’s ability to maintain its FY25 guidance is increasingly at risk due to these ongoing macroeconomic headwinds. As a result, Caitlin Cronin maintains a Hold rating with a lowered price target of $15, awaiting more clarity in the broader economic and geopolitical landscape before adopting a more positive outlook.
According to TipRanks, Cronin is an analyst with an average return of -3.7% and a 34.57% success rate. Cronin covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, Globus Medical, and AxoGen.