The selloff in equities following the outbreak of the pandemic and global shutdowns took a toll on InMode (INMD) stock. Come 2021, the fast-track recovery in consumer demand and higher adoption of its products and systems is leading to highly profitable growth, driving its stock higher.
Thanks to its stellar first-half financial performance, shares of the aesthetic medical products manufacturer have rallied over 133% this year. (See InMode stock charts on TipRanks).
In the most recent quarter, InMode’s revenues surged 184% year-over-year, while its adjusted net income reached $43.9 million, compared to $10.1 million in the prior-year period. A growing footprint in key markets, momentum in the U.S., and expansion of its product pipeline, are all reasons for InMode’s strong financial and operating performance.
In response to the earnings release, Needham analyst Michael Matson termed InMode’s Q2 performance as “jaw-dropping.”
The five-star analyst maintained his Buy rating on InMode stock and increased the price target to $129 (16.5% upside potential) from $119, citing the strong growth of its existing products and two major product launches in the second half of this year.
Notably, InMode will launch a new Empower platform focused on women’s health and wellness on August 15th. The launch is strategically important, as it will expand InMode’s capabilities in the larger gynecology market, and diversify its revenue and customer base.
Besides for its new product launch, Matson views InMode stock as “attractively valued” at current price levels, given its strong growth. He is upbeat on the aesthetics market, InMode’s medical technologies “that fill the ‘treatment gap’ between non-invasive and invasive procedures,” and its high-margin business. InMode is projecting its adjusted gross margin rate to be 84-86% in 2021, which is encouraging.
On TipRanks, InMode stock has received 5 positive analyst reviews, for a unanimous Strong Buy consensus rating. With over 239% growth in its stock in one year, the average InMode price target of $114.60 implies 3.5% upside potential to current levels. Furthermore, InMode stock has an ‘Outperform’ Smart Score of 9 out of 10.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
