Needham downgrades InMode after aesthetics patient survey

Needham analyst Mike Matson downgraded InMode to Hold from Buy without a price target. The firm’s Q1 aesthetics patient survey indicates that consumers are reducing their spending on procedures. In addition, the analyst is concerned that an acquisition could be a negative catalyst after InMode management expressed interest in M&A. The company’s earnings growth is likely to lag its revenue growth in 2023 and possibly 2024, the analyst tells investors in a research note. The firm cites negative data points following the aesthetics patient survey for the downgrade.