Piper Sandler maintains Overweight rating on Insulet stock

Published 09/05/2025, 14:50
Piper Sandler maintains Overweight rating on Insulet stock

On Friday, Piper Sandler expressed continued confidence in Insulet Corporation (NASDAQ:PODD), maintaining an Overweight rating and a $310.00 price target, which aligns with the broader analyst consensus showing potential upside. According to InvestingPro data, analyst targets range from $260 to $360, reflecting strong market confidence in this $21.36 billion medical device company. The firm’s analysts highlighted Insulet’s strong first-quarter performance, which surpassed sales and adjusted EBITDA expectations. Additionally, the company’s revenue outlook for the remainder of the year was increased, an adjustment seen as achievable by the analysts.

Insulet, a medical device company specializing in tubeless insulin pump technology, reported its first-quarter results earlier on Friday. The results not only exceeded financial projections but also indicated robust business momentum, with revenue growing at 23.49% and maintaining an impressive 70.39% gross margin. InvestingPro analysis reveals the company maintains excellent financial health with a "GREAT" overall score, supported by strong liquidity metrics. This positive development comes in the wake of the company appointing a new CEO last week, a move that Piper Sandler regards as further evidence of Insulet’s solid growth trajectory.

The analysts noted that Insulet’s new patient additions in the first quarter were higher than in previous quarters, which is particularly promising given that this period is usually slower for the industry. The analysts also observed that the Type 2 diabetes patient pool is expanding, potentially providing a consistent boost to the company’s performance throughout the year.

Despite acknowledging the potential challenges posed by pricing pressures in the pharmacy sector and upcoming competition, Piper Sandler conveyed a strong belief in Insulet’s capacity for sustained revenue and profitability expansion. This outlook underscores the firm’s recommendation that Insulet remains a compelling investment in the diabetes care space.

In other recent news, Insulet Corporation has reported impressive financial results for the first quarter of 2025, surpassing Wall Street’s expectations. The company achieved earnings per share of $1.02, exceeding the forecast of $0.79, and reported revenue of $569 million, outperforming the anticipated $543.22 million. This represents a 30% year-over-year revenue increase, driven by strong demand for the Omnipod product line. Insulet’s U.S. Omnipod revenues reached $401.7 million, while international revenues were $152.4 million, both figures surpassing expectations.

Analysts from Canaccord Genuity and BTIG have responded positively to these results, with Canaccord raising Insulet’s stock price target to $331 and BTIG increasing it to $330, both maintaining a Buy rating. These upgrades reflect confidence in Insulet’s growth strategy, particularly in the Type 2 diabetes market, where the company is seeing significant new patient starts. Insulet has also raised its full-year 2025 revenue growth guidance, indicating strong future prospects. The company’s gross margin improved to 71.9%, further highlighting its operational efficiency.

Recent executive changes, including the appointment of Ashley McEvoy as CEO, have not disrupted the company’s strategic direction. Insulet continues to focus on expanding its market share in the Type 2 diabetes segment and international markets, leveraging its innovative insulin delivery systems.

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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