Inmode Ltd (INMD) Stock Forecast & Price Target

InMode Ltd demonstrated robust performance, selling 971 systems in the second quarter of 2025 and growing its global installed base to approximately 28,855 units, with significant contributions from the US market. The company reported an operating margin of 27.5%, surpassing estimates and reflecting a year-on-year increase of 40 basis points. Furthermore, the domestic sales in the US reached $49.7 million, marking a notable improvement with a 9% growth compared to a decline of 7% in the previous quarter, highlighting the increasing consumer and physician interest within the sizeable aesthetics market.

InMode Ltd is facing a concerning outlook as its gross margins are expected to contract, which could negatively impact its overall profitability despite currently high margins within the med tech sector. Furthermore, projections indicate that earnings per share (EPS) growth is likely to lag behind revenue growth, suggesting inefficiencies or increased costs that could hinder future financial performance. The company's bear case scenario anticipates a revenue compound annual growth rate (CAGR) of less than 5% over the coming years, primarily due to weaker-than-expected growth from established products and slower adoption rates of new offerings.