Analyst Michael Matson of Needham reiterated a Buy rating on Inogen, retaining the price target of $12.00.
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Michael Matson has given his Buy rating due to a combination of factors tied to Inogen’s expanding presence in the respiratory care market. He views the launch of the Aurora CPAP mask family as a meaningful entry into a large, over-$2B U.S. market that is currently concentrated among a few dominant players. Even though competition is intense, he believes that capturing just a few percentage points of market share could materially increase Inogen’s revenue, given the revenue contribution implied by each 1% share gain. Early patient-use data indicating high satisfaction and comfort with the Aurora masks supports the potential for adoption and share gains over time.
Moreover, Matson interprets the Aurora masks as likely being developed and manufactured in-house, which should lift Inogen’s overall gross margin as mask sales scale. He also sees this product launch as a logical step in management’s broader initiative to turn Inogen into a diversified respiratory device platform, building on prior moves such as the SIMEOX airway clearance acquisition and the U.S. distribution of the Voxi 5 stationary concentrator. This growing, complementary product portfolio increases his conviction that Inogen can drive sustainable growth and margin expansion, supporting his Buy rating on the stock.
Matson covers the Healthcare sector, focusing on stocks such as Penumbra, Masimo, and TransMedics Group. According to TipRanks, Matson has an average return of 1.1% and a 44.75% success rate on recommended stocks.