Inogen Incm INGN won't need to restate revenue when it reports delayed results for its 2014 fourth quarter, an analyst said Thursday.
Inogen changed hands recently at $36.71, up 3.8 percent. Shares are up more than 16 percent year-to-date.
Needham's Michael Matson reinstated coverage of the health care company with a Strong Buy rating and $45 target.
Matson had worried that a downward restatement of previous results would produce a slower-than-expected growth rate.
The company, which provides portable oxygen units for home health care, said earlier this week that its direct-to-consumer sales representatives violated company policy with "modified documentation."
The accounting issue won't result in a restatement, the company said. On April 1, the company had announced the reporting delay, but didn't offer details.
Matson expects the company will beat expectations for the fourth quarter.
The company's forecasts "appear to imply a significant slowdown that "doesn't seem justified in light of their recent performance," Matson said.
The company, which went pubic in February 2014 at $16 a share, offers a non-transferable warranty via direct-to-consumer sales that provides a functional oxygen concentrator for the lifetime of a patient.
Inogen estimates that on average, all of its customers will succumb to their disease within five years.
Direct-to-consumer sales and rentals represented about 58 percent of the company's revenue for the three months ended September 2014. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
