- Inogen has had a difficult YTD in its direct-to-consumer and business-to-business segments, directly from Covid-related headwinds.
- Steep declines in sales related to travel restrictions and purchase order cancellations have translated to pressures at the operating margin level.
- Ex-pandemic, there has been significant downward pressure on pricing distribution over the previous 2 years, illustrating the longer-term trend for shares.
- Even though the company is worth revisiting post-pandemic, we believe that the near-term upside is hard to see, lacking conviction for immediate entry.
- We see a price target of $28, ~30% downside on today's trading, adding weight to our thesis.
For further details see:
Inogen: Significant Downward Pressures Over The Last 2 Years Ex-Pandemic