- Supply chain issues have hit Inogen hard, undermining the company's ability to ship to demand and driving some share loss despite healthy underlying demand trends.
- Management has redesigned its motherboards to use the chips it can find, but supply challenges may not meaningfully resolve until 2023.
- Portable oxygen concentrators continue to gain share within the oxygen therapy market, and Inogen is positioned to benefit from growth in adjacent markets as well as home medical equipment.
- Long-term revenue growth of 6% and double-digit FCF growth can drive a fair value in the high-$40s today, but it will likely take visibility/confidence on revenue reacceleration and margin leverage to move the shares.
For further details see:
Hammered By Supply Issues, Inogen Could Be A 2023 Comeback Story