Inogen (INGN) Stock Forecast & Price Target

Inogen Inc. is strategically positioning itself for growth by enhancing synergies across various sales channels and revitalizing its direct-to-consumer business while also strengthening its B2B relationships through innovative partnerships. The collaboration with Yuwell for entry into the Chinese market represents a significant long-term opportunity, given that this market is approximately ten times the size of the U.S. market for chronic obstructive pulmonary disease (COPD). Additionally, the increasing demand for portable oxygen concentrators (POCs), which are projected to capture 58% of the market in the next five years, supports a favorable outlook for Inogen’s financial performance.

Inogen Inc. has experienced significant challenges, including an oversized sales force that previously resulted in unprofitable operations despite revenue growth. In 2023, the company reported a substantial decline in sales across its business-to-business (B2B) sector by 17% and direct-to-consumer (DTC) sector by 28%, indicating weakened demand for its products. Additionally, a strategic shift in reimbursements, with patients moving from higher-paying Medicare to lower-reimbursing private insurance and an increase in capped patients, has further contributed to declining revenues and heightened operational risks.