InMode’s Hold Rating: Balancing Short-Term Challenges with Long-Term Opportunities

Canaccord Genuity analyst Caitlin Cronin maintained a Hold rating on InMode yesterday and set a price target of $14.00.

Caitlin Cronin’s rating is based on a combination of factors that reflect both the challenges and opportunities facing InMode. The company is navigating macroeconomic and geopolitical pressures that have persisted since 2023, impacting its short-term performance. Despite these headwinds, InMode is actively investing in its long-term strategy by restructuring its sales team and expanding its global operations, which includes launching new platforms in noninvasive aesthetics and clinical areas.
While InMode is seeing growth in its noninvasive platform sales, driven by the success of new products like the CO2 laser device, the company is experiencing softness in its more profitable U.S. market. This has resulted in a shift in revenue mix towards international markets, which are less profitable. Additionally, the company’s guidance philosophy has changed, with a significant guidance cut accompanying the Q2 results. These factors contribute to the Hold rating, as the near-term performance remains uncertain, though the long-term strategy shows promise.

Cronin covers the Healthcare sector, focusing on stocks such as Zimmer Biomet Holdings, InMode, and Vericel. According to TipRanks, Cronin has an average return of 3.7% and a 51.00% success rate on recommended stocks.

In another report released on July 31, TR | OpenAI – 4o also downgraded the stock to a Hold with a $15.00 price target.