Canaccord maintains Buy on Insulet stock, price target at $324

Published 29/04/2025, 13:12
Canaccord maintains Buy on Insulet stock, price target at $324

Tuesday, Insulet Corporation (NASDAQ:PODD) shares maintained a Buy rating with a steady price target of $324.00, as confirmed by Canaccord Genuity. The endorsement comes in the wake of Insulet’s announcement on Monday that Ashley McEvoy has taken the helm as President and CEO, effective immediately. According to InvestingPro data, the medical device company, currently valued at $18.2 billion, has demonstrated strong financial health with an overall score of "GREAT" and maintains a healthy current ratio of 3.58. McEvoy, a seasoned executive with a 27-year tenure at Johnson & Johnson, steps into the role previously held by Jim Hollingshead.

Insulet, a medical device company, has expressed confidence in its financial trajectory, expecting to surpass its initial first-quarter revenue guidance, projecting growth between 22% and 25% year-over-year on a constant currency basis. This outlook aligns with the company’s strong performance, as InvestingPro data shows a robust revenue growth of 22.07% over the last twelve months. Furthermore, the company anticipates raising its full-year guidance to reflect a 16% to 20% year-over-year increase. For deeper insights into Insulet’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro. Detailed figures are set to be unveiled during the first-quarter earnings call on May 8.

The company’s optimistic outlook aligns closely with current market expectations. The consensus estimates for Insulet’s first-quarter and full-year 2025 revenue growth stand at 23.0% and 18.3% year-over-year, respectively. Canaccord Genuity’s own estimates are slightly different, with projections of 21.9% for the first quarter and 18.6% for the full year.

McEvoy’s extensive experience includes her most recent position as Executive Vice President and Worldwide Chairman of Johnson & Johnson’s MedTech division. Her prior roles at the company encompassed a six-year period as Group Chairman for Vision and Diabetes Care. Additionally, she has been serving on the board of directors for Procter & Gamble since 2023 and has a history of involvement with the Board of Trustees for Children’s Hospital of Philadelphia.

In related news, Insulet has decided to postpone its Investor Day, which was originally scheduled for June 5. The company has not provided a formal update to its 2025 outlook, but the forthcoming Q1 earnings call is anticipated to offer further insights into its financial expectations for the year. Based on InvestingPro’s Fair Value analysis, the stock currently appears fairly valued, with analyst price targets ranging from $234 to $350, reflecting the market’s mixed sentiment about its growth prospects.

In other recent news, Insulet Corporation has made several significant financial and operational announcements. The company issued $450 million in senior unsecured notes due 2033, with an annual interest rate of 6.50%, expecting net proceeds of approximately $444 million. This move is part of a strategic financial restructuring aimed at optimizing Insulet’s capital structure. Concurrently, Insulet has increased its revolving credit facility to $500 million, extending its maturity to 2030, and plans to use these funds for general corporate purposes, including repurchasing existing convertible notes.

Insulet’s corporate family rating received an upgrade from Moody’s Ratings to Ba3 from B1, reflecting healthy earnings growth and the successful commercialization of the Omnipod 5 system. Similarly, S&P Global Ratings upgraded Insulet’s credit rating from ’BB-’ to ’BB’, citing strong operating performance and expected deleveraging. The company reported a 22% increase in revenue and a 33% increase in EBITDA for 2024, supported by the Omnipod 5’s increased adoption.

Additionally, Insulet announced positive clinical trial results for its Omnipod 5 Automated Insulin Delivery System, showing significant benefits for type 1 diabetes patients. The study highlighted improved glucose control without increased hypoglycemia, reinforcing the system’s safety and efficacy. These developments collectively underscore Insulet’s strategic focus on financial flexibility and innovation in diabetes management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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