Citi adds Edwards Lifesciences stock as Top Pick, drops Insulet

On Thursday, Citi made adjustments to its Top Pick list, adding Edwards Lifesciences (NYSE:EW) and removing Insulet (NASDAQ:PODD). The decision comes as analysts at Citi expect Edwards Lifesciences to reach several key milestones in the near future. These include the European launch of its SAPIEN M3 product following its April CE Mark approval, anticipated U.S. data presentation at the Transcatheter Cardiovascular Therapeutics (TCT) conference, and a projected approval by 2026.

Additionally, Edwards Lifesciences is awaiting the national coverage determination (NCD) for Evoque and the reopening of the NCD for Transcatheter Aortic Valve Replacement (TAVR), which could potentially increase the number of TAVR centers and streamline the procedure team. Further, the company plans to expand into the asymptomatic patient population with a label expansion slated for May 1, 2025, and expects continued adoption of its RESILIA technology in surgical procedures and contributions from the PASCAL system in Transcatheter Mitral and Tricuspid Therapies (TMTT).

While Citi continues to hold a positive view on Insulet, affirming a Buy rating, the firm has raised its price target for Insulet shares to $380 from $320. This adjustment reflects Insulet’s strong performance, with the stock having risen 25% year-to-date and an impressive 79.2% over the past year. According to InvestingPro data, the company maintains a "GREAT" financial health score and has demonstrated robust revenue growth of 23.49% in the last twelve months. However, with the stock trading at a P/E ratio of 56.4x and near its 52-week high of $329.33, current valuation metrics suggest the stock may be approaching overvalued territory. Despite these gains, Citi has chosen to remove Insulet from its Top Pick designation. The changes in designation reflect Citi’s strategic focus on the potential growth and upcoming milestones for Edwards Lifesciences in the context of the medical device industry. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 16 additional ProTips and a detailed Pro Research Report, available as part of their coverage of 1,400+ US equities.

In other recent news, Insulet Corporation has reported a strong first-quarter performance, with revenues reaching $569.0 million, marking a 28.8% year-over-year increase. This growth exceeded both company guidance and analyst expectations. Piper Sandler and BTIG have maintained their confidence in Insulet, with Piper Sandler keeping an Overweight rating and BTIG raising their price target to $330. BTIG highlighted Insulet’s robust margins and increased revenue growth guidance for 2025, reflecting optimism in the company’s market position. Canaccord Genuity also raised their price target to $331, emphasizing the potential for growth in the Type 2 diabetes market and international expansion. Wolfe Research upgraded Insulet’s stock to Outperform with a $350 target, projecting significant market penetration in the diabetes sector. Meanwhile, Bernstein analysts raised their price target to $375, citing Insulet’s competitive edge with the Omnipod 5 product. These developments indicate a positive outlook from multiple analyst firms, underscoring Insulet’s strong market position and growth potential in the diabetes care industry.

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