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US obesity management market offers meaningful upside

Body composition analysis becoming essential in obesity treatment

In weight loss, the importance of preserving muscle mass is increasingly being recognized. Thus, the latest clinical focus for GLP-1 treatments―which have reshaped the obesity management landscape―is minimizing muscle mass loss rather than simply maximizing weight reduction. In Jan. 2025, the FDA also stressed the importance of body composition assessment in its obesity drug development guidance. This is bringing increasing attention to InBody, which effectively created the body composition analyzer market.

In addition, the rise of telehealth is accelerating demand for body composition analysis. Telehealth platforms have begun partnering with offline clinics to improve adherence to obesity treatment. At the same time, offline clinics are increasingly adopting body composition analyzers to differentiate their services from telehealth-only platforms.

GLP-1s are driving the expansion of the US obesity management market. Since Wegovy’s commercialization in 2023, hospitals/clinics have emerged as InBody’s largest customer segment. We estimate that the US market opportunity related to roughly 23,000 obesity clinics and med spas is worth at least W530bn. Given that the traditional US body composition analysis market is estimated at around W300bn, this expansion represents a meaningful opportunity. Even assuming annual penetration gains of only 3%p across obesity clinics and med spas, this could translate into close to W20bn in incremental revenue per year. Backed by continued growth in the obesity management market, we expect InBody’s US revenue to increase by around W110bn by 2027.

Raise TP to W74,000; maintain Buy

We lift our target price for InBody to W74,000 (from W55,000), as we revise up our target EV/EBITDA from 8x to 12x, the stock’s seven-year high. With our target price implying 59.5% upside potential, we maintain our Buy rating. InBody is currently trading at a 12-month forward EV/EBITDA of 6.5x, above the three-year average of 4.6x but still below prior peak levels, which exceeded 30x. We believe the recent re-rating reflects the rise of the obesity theme, which has brought renewed attention to InBody’s strengths, including its status as a category creator, margin expansion potential, solid balance sheet, high export exposure, business model that generates value for customers, and partnership with NAVER.

Our target price corresponds to a 12-month forward P/E of around 20x, which does not look demanding. For 2026, we forecast revenue at W277.6bn (+19% YoY), supported by solid growth in the US, and adjusted EBITDA at W64bn (+33% YoY; adjusted EBITDA margin of 23%), reflecting company-wide cost-cutting initiatives.