New long for the mid-term – InMode!

InMode (INMD) is an Israeli company that develops, manufactures and distributes minimally invasive devices for aesthetic medicine.

InMode equipment uses radiofrequency technology to improve the looks of the skin. The results are comparable to plastic surgery, but with minimal or no interference to the patient's tissues. Risks of bacterial infections are reduced and the skin looks healthier.

The company's shares fell 25% in October amid conflict in the Middle East. Meanwhile: 

• more than 80% of INMD's revenue comes from the U.S. and Europe. Israel accounts for only 1% of the company's total revenue.
• Management assures investors that the conflict will not lead to significant interruptions in production.

The company's cash reserves in the third quarter amount to more than $675.8 million – 40% of its market capitalisation. INMD has shown steady revenue and earnings growth over the past five years.

The company's competitive advantage is a niche market at the interface between plastic surgery and laser procedures. Ten patents on its technology protect InMode's developments from copying.   

InMode sells and leases its equipment to 100,000 physicians in U.S. clinics and another 200,000 specialists in 93 countries in Asia, Europe, the Middle East and Australia. The company's products and treatment services are widely used by celebrities including Kim Kardashian, Jessica Simpson and Eva Longoria.

InMode is well positioned to capitalise on the growing global aesthetic medicine market. Our mid-term target is $50 per share (+117%).

This post is not an investment recommendation. Make decisions based on your own analysis.