phive2015
Shares of Inogen (NASDAQ:INGN) surged by 22% in afternoon trading on Thursday following the announcement of William Blair’s upgraded rating to outperform. This move came as William Blair cited rival Phillips (PHG) Respironics’ intention to exit the US portable oxygen concentrator market.
William Blair emphasized that this strategic decision by Respironics would open up an opportunity for Inogen to capture a portion of the market share previously held by Respironics, estimating it to be between 15% and 20%.
The investment firm expressed that, in a bear case scenario, the exit of Respironics could assist Inogen in mitigating potential challenges from “executional difficulties and deteriorating macro conditions.”
Conversely, in a bull case scenario, William Blair noted that Respironics’ exit “represents a substantial opportunity for exceeding projected numbers and establishing a stronger market position for Inogen.”
