Inogen (NASDAQ:INGN) is still early in the early months of its new CEO’s tenure, and likewise still in the early days of its model transition, but there has definitely been progress, with better-than-expected revenues across the business in the first half of 2021. Unfortunately, that progress has smacked into a hard near-term wall created by semiconductor shortages that will likely drive lower sales in the second half of the year.
Longer term, I continue to believe that shifting the company’s focus toward the B2B (home medical equipment providers) and rental markets is the right move relative to doubling down on direct sales to consumers. I also still see the shares as more interesting on a valuation and story basis, with med-techs with the growth I expect from Inogen usually trading at more than 4x forward sales rather than today’s 3x.
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Supply Chain Issues Knock Inogen Back, But Underlying Growth Is Encouraging
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