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Investing.com - UBS upgraded Insulet Corporation (NASDAQ:PODD) from Neutral to Buy on Wednesday, while raising its price target to $400.00 from $355.00. The stock currently trades at $333.47, just 5.7% below its 52-week high of $353.50, after posting impressive year-to-date returns of 27.7%.
The upgrade reflects UBS’s increased conviction in Insulet’s growth trajectory, particularly regarding the company’s expansion into the Type 2 diabetes market. This optimism aligns with broader analyst sentiment, as InvestingPro data shows 18 analysts have recently revised their earnings expectations upward for the upcoming period.
UBS believes Insulet’s Type 2 diabetes business ramp-up will be substantial enough to counterbalance competitive challenges, including potential new patch pump launches from rivals or expanded pharmacy access initiatives.
Based on this outlook, UBS raised its 2025-2028 sales growth compound annual growth rate (CAGR) forecast for Insulet to 17% from its previous estimate of just under 16%, aligning with consensus expectations.
The firm’s revised assessment follows multiple key opinion leader checks that reinforced confidence in Insulet’s market position and growth potential over the next 12-24 months.
In other recent news, Insulet Corporation has reported impressive third-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.24, exceeding the forecasted $1.14, and reported revenue of $706.3 million, which outpaced the consensus estimate of $678.09 million. This represents a 29.9% year-over-year growth in revenue. U.S. Omnipod revenue increased by 25.6% year-over-year, while international Omnipod revenue saw a 39.9% growth in constant currency. Analysts at UBS have upgraded Insulet’s stock rating from Neutral to Buy, citing growth potential in the Type 2 diabetes market. Jefferies has also raised its price target for Insulet to $400, maintaining a Buy rating due to strong sales growth. BTIG reiterated its Buy rating with a $370 price target following the company’s robust third-quarter performance. These developments highlight Insulet’s strong market presence and potential for future growth.
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