Shares of the medical technology company InMode (INMD) closed 12.8% lower on Tuesday. However, this shouldn’t surprise much as a pullback was long due, given the massive growth in its stock this year.
Despite yesterday’s decline, InMode’s shareholders have a lot to cheer for, as its stock is up about 214% this year. Furthermore, InMode stock has appreciated over 313% in one year. (See InMode stock charts on TipRanks)
The rally in InMode stock is backed by the increased adoption of its products, continued strength in the U.S. market, growing global footprint, and new product launches. Further, its diversified revenue base and high margin business model support the uptrend in its stock price. Therefore, I maintain a Bullish outlook on InMode.
Last month, InMode launched EmpowerRF, a platform focused on women’s wellness. The move greatly expands InMode’s capabilities in the women’s health and wellness market. InMode’s CEO, Moshe Mizrahy, stated, “Empower will expand our business and mark a major step for InMode into the gynecology market.”
In addition to Empower, InMode remains on track to launch its ophthalmology platform, EnvisionRF, towards the end of 2021.
Michael Matson of Needham expects these platform launches to “add new growth drivers.” He added that Empower and Envision would significantly expand InMode’s total addressable market. Matson said that with these two new platforms, InMode would target “markets with over three times as many physicians as its aesthetics market.”
Highlighting the strength of its existing products and adoption of new platforms, the analyst sees InMode’s top-line growing at a compound annual growth rate of 20-25% over the coming years. Moreover, he expects the company to outperform the Street’s estimates in 2022.
Matson has a Buy rating on InMode stock. Furthermore, he increased the price target to $206 (38.2% upside potential) from $129.
Other than Matson, the rest of the Street maintains a positive outlook on INMD stock. It has received 5 positive analyst reviews for a unanimous Strong Buy consensus rating. The average InMode price target of $139.20 implies 6.6% downside potential to current levels.
Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
