Inogen, Inc. (NASDAQ: INGN) has been forgotten by many investors, but now there have been two analyst reports in just the last month predicting that Inogen’s stock could double. While investors may chase analyst stocks with aggressive price targets, it is important to consider that the market capitalization of Inogen is currently only about $185 million. The company also loses money at the present time in net earnings, and it is being called a “turnaround stock” in research reports. This puts Inogen in the highly speculative stock category for investors.
Inogen’s stock fell from grace after surging from 2015 to 2018. It was the sole provider of a light-weight portable oxygen machine that untethered those with COPD and oxygen deficiencies who had to rely on wheeled oxygen tanks that could be rolled around. After the stock started to crash, its losses may have marred investors to the point-of-no-return.
Oggonomics would like remind its readers that no single analyst report should ever be the sole basis to buy or sell a stock. This is particularly true for aggressive “Buy” and “Outperform” ratings in speculative small cap stocks with thin trading volume. Investors should do their own research. Analysts sometimes get their thesis wrong just like the rest of us. And any decision, particularly in such speculative stocks, should be made after consulting with a financial advisor or professional.
THE BACKDROP…
Ingogen reported in May that its total Q1 revenue of $82.3 million was an improvement of 5.5% (and up 7.1% at constant currency rates) from the prior-year’s period. Total gross margin also slightly improved, operating expenses were down 13.1% and its net losses (GAAP) were cut in half — while its Adjusted EBITDA was barely above breakeven after a negative $7.6 million the year before. Inogen cited higher demand from international and domestic business-to-business customers, even as the higher demand was partially offset by lower direct-to-consumer and rental revenues.
And an even larger boost here was that Inogen’s full year 2025 guidance called for revenue to rise 5% to 6% in a range of $352 million to $355 million, and the company is expecting to approach adjusted EBITDA breakeven. The company also had cash and cash equivalents of $122.5 million with no outstanding debt.
President & CEO Kevin Smith said in the earnings report:
“Inogen’s strong first quarter financial results underscore our success in driving improved commercial and operational execution. We are making great progress and remain committed to positioning the company for sustainable growth and profitability, while creating value for all stakeholders.”
Inogen’s stock was at $7.17 the day of earnings and fell to $6.35 in the post-earnings reaction. It then drifted even lower to a $5.75 close by May 15 before recapturing much of its losses.
THE LATEST BIG ANALYST CALL…
B. Riley’s Anderson Schock has just launched new coverage as Buy with a $14 price target. While this is even higher than a prior analyst price hike, it actually represents the second “double-your-money” price target within a month.
The analyst is citing upside from this as “deeply undervalued” for the turnaround for this portable oxygen machine system that gives elderly, those suffering from COPD, and others with limited oxygen functions much more mobility capabilities.
THE PRIOR BIG ANALYST CALL…
Needham & Co. predicted a double-your-money move as it upgraded Inogen to Buy from Hold and it issued a $12 price target on May 22. This was versus a prior $5.96 close. Needham’s Michael Matson sees Inogen’s new management showing significant progress in a turnaround that the market is not giving any credit with its stock price down so much. He noted that its shares are undervalued as a result.
Another issue outside of valuations for the strong call is that revenue growth is coming back and may accelerate into 2026, with progress being made on margins and targeting a wider market in respiratory devices to drive new growth ahead.
THE ONE CAUTIOUS CALL…
As Oggonomics always likes to show both sides of the coin, Stifel was recently not as positive as the two latest bullish calls. A day after the earnings report, Stifel maintained a Hold rating on May 8. Unfortunately for Inogen, the firm slashed its prior $10 price target down to $7 as its new target.
IN THE END
Monday’s analyst upgrade had Inogen shares up over 9% at $6.83 in mid-day trading. What was surprising is that the trading volume of 190,000 shares at the noon hour was not even matching the average daily volume of 281,000 shares.
Inogen has only traded more than 1 million shares in a single day once in 2025. This means that it is either completely overlooked by investors — or it means no one is willing to go back into a stock that lost so much money for investors in prior years.
The monthly chart from finviz below will show the full picture to speak for itself going back a decade.
