Inogen target hiked by Piper

Inogen price target raised to $235 from $190 at Piper Jaffray. Piper Jaffray analyst JP McKim raised his price target for Inogen to $235 and says investors should own the stock into the company’s Q2 results. Inogen every 18 months does a price elasticity of demand check by offering certain discounts in certain states to see what the volume of demand is like at a lower price, McKim tells investors in a research note. The analyst’s channel checks indicate this was done during Q2 across 10 states, mainly in the DTC business. Feedback suggests there is clear demand for the product at lower prices and that there is no need for Inogen to permanently drop price at this time, McKim adds. He believes the company’s volumes can grow over 60% in Q2, and $87M in sales is his updated forecast. The analyst adds that Q2 sales north of $90M “would not be farfetched.” McKim keeps an Overweight rating on Inogen.

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