William Blair upgrades Inogen to Outperform on Respironics exit

William Blair analyst Margaret Kaczor upgraded Inogen to Outperform from Market Perform. With Respironics’ January announcement that it will exit the U.S. portable oxygen concentrator market by the end of the month, Inogen has an opportunity to capture a meaningful portion of its forfeited share, the analyst tells investors in a research note. The firm estimates Respironics was the second largest player in the market behind Inogen with between 15%-25% share. In a bear case scenario, Respironics’ exit can help offset potential headwinds following recent executional challenges or worsening macro conditions, says Blair. In a bull case scenario, the exit represents a sizable opportunity for upside to numbers and a stronger market position for Inogen, the firm adds. It sees a favorable risk/reward on the stock at current levels.