On Friday, Bernstein analysts increased their price target on Insulet (NASDAQ:PODD) Corporation (NASDAQ: PODD), a medical device company specializing in insulin delivery systems, from $355 to $375 while maintaining an Outperform rating on the stock. The adjustment reflects Bernstein’s growing confidence in Insulet’s market position and sales forecast. The stock currently trades at $322.44, near its 52-week high of $323, with InvestingPro data showing an impressive 73.71% return over the past year.
Analysts at Bernstein, led by Lee Hambright, have expressed a strong endorsement of Insulet, naming it their top pick within the Diabetes sector. The team at Bernstein highlights Insulet’s competitive edge, particularly with its Omnipod 5 product, which they see as a leader in the type 2 diabetes (T2D) market. This market is expanding alongside the overall growth of the insulin pump sector. According to InvestingPro data, 11 analysts have recently revised their earnings estimates upward, while the company maintains a robust gross profit margin of 70.39%.
The revised price target of $375 is based on an increased price-to-sales (P/S) multiple of 8.5 times, up from the previous 8.25 times. Bernstein’s decision to raise the multiple is due to their heightened conviction in Insulet’s potential to exceed sales expectations. The new sales forecast anticipates revenues of $3.21 billion, looking ahead to the period from the third quarter of 2026 to the second quarter of 2027.
Bernstein’s analysis points to Insulet’s "strong moat" around its product design, which they believe is the most effective in the market. The Omnipod 5 device, in particular, is singled out as the "clear winner" for its role in managing type 2 diabetes, a segment that is seeing significant growth. This is reflected in the company’s strong revenue growth of 23.49% over the last twelve months, with InvestingPro analysis indicating the company maintains a "GREAT" overall financial health score.
Insulet Corporation’s stock price is anticipated to be influenced by these projections and the positive outlook provided by Bernstein. The firm’s analysis serves as a signal to the market of Insulet’s robust position within the rapidly growing diabetes care industry. For deeper insights into Insulet’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which includes detailed analysis of the company’s financial health, valuation metrics, and growth potential.
In other recent news, Insulet Corporation reported robust financial results for the first quarter of 2025, surpassing Wall Street expectations with earnings per share (EPS) of $1.02, compared to the forecast of $0.79, and achieving a revenue of $569 million, exceeding the anticipated $543.22 million. The company saw a 28.8% year-over-year revenue increase, with the U.S. Omnipod product line contributing $401.7 million and international revenues delivering $152.4 million. Following these impressive results, several analyst firms have adjusted their ratings and price targets for Insulet. Wolfe Research upgraded Insulet’s stock rating from Peerperform to Outperform, setting a price target of $350, reflecting their confidence in the company’s long-term market penetration potential. Piper Sandler maintained an Overweight rating, emphasizing Insulet’s strong first-quarter performance and increased revenue outlook. Canaccord Genuity raised its price target to $331, maintaining a Buy rating, while BTIG increased its target to $330, also reiterating a Buy rating. These developments highlight Insulet’s strong market position and growth prospects, particularly in the diabetes care sector.
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