Insulet stock price target maintained at $400 by UBS on competitive moat

Investing.com - UBS has reiterated its Buy rating and $400.00 price target on Insulet Corporation (NASDAQ:PODD), following a recent 10% sell-off after the company’s analyst day. The stock currently trades at $338.59, representing a potential 18% upside to UBS’s target, though InvestingPro data suggests the stock is slightly overvalued based on its Fair Value assessment.

The firm believes Insulet’s competitive advantages are underappreciated, specifically highlighting the company’s brand strength, primary care physician presence, and manufacturing capabilities. This assessment aligns with Insulet’s strong financial health, as InvestingPro data shows the company maintains a healthy current ratio of 2.87, with liquid assets exceeding short-term obligations.

UBS also noted that the insulin-intensive Type 2 diabetes market opportunity is large enough to support multiple players, despite an evolving competitive landscape. This market opportunity has helped drive Insulet’s impressive 27.11% revenue growth over the last twelve months.

The research firm now sees an even more compelling risk/reward profile for Insulet, with potential for meaningful sales upside over the next 12 months.

UBS indicated that Insulet has a strong long-only investor base that appears supportive of the shares during recent weakness, with investors expressing conviction in the durability of the company’s growth outlook.

In other recent news, Insulet Corporation’s earnings and revenue outlook have garnered significant attention from analysts. During its Investor Day, Insulet announced a sales growth target of approximately 20% over the 2025-2028 period, which exceeded both UBS and broader market estimates. UBS maintained its Buy rating on Insulet with a $400 price target, citing the company’s robust growth outlook. Meanwhile, Truist Securities raised its price target to $412, highlighting Insulet’s three-year revenue and profit outlook that surpassed consensus expectations.

Canaccord Genuity also adjusted its price target for Insulet to $432, maintaining a Buy rating, following the company’s presentation of its long-range plan and innovation roadmap. Bernstein SocGen Group reiterated an Outperform rating with a $410 price target, emphasizing Insulet’s strong market position and growth potential. Bernstein particularly noted Insulet’s strategy to increase its penetration in the U.S. Type 1 diabetes market, develop the Type 2 diabetes market, and expand internationally. These recent developments underscore the positive sentiment among analysts regarding Insulet’s future performance.

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