Jefferies Analysts Optimistic on Insulet Corp.’s Valuation
Insulet Corp. (PODD) witnessed a premarket surge of 4% on Monday following an upgrade by Jefferies analysts who now rate the stock as a “buy” rather than a “hold”. The analysts identified attractive valuation opportunities for the company after its shares had been negatively affected by concerns surrounding the impact of the weight-loss drug craze on the insulin pump maker’s business.
Diabetes Market Remains Lucrative despite Risks
While diabetes stocks have often been perceived as high-risk due to the popularity of GLP-1 treatments for diabetes and weight loss, Jefferies analysts emphasized that the diabetes market remains vast and relatively untapped. In a note released on Monday, the analysts stated their confidence in the industry’s potential for further growth.
Insulet’s Disposable Patch Pump Gains Momentum
Insulet shares have experienced a significant decline of 45% year to date. However, the company’s disposable patch pump is steadily gaining market share due to its convenient design for patients. Recent prescription data and feedback from physicians indicate that Insulet is poised to deliver strong results in the upcoming quarters, according to the analysts.
Positive Outlook with a $240 Price Target
The analysts have set a price target of $240 for Insulet Corp. shares, reflecting their optimistic outlook on the stock. This target asserts higher potential for the company’s future performance.
Insulet Set to Present Innovative Insulin Delivery System
Coinciding with these positive developments, Insulet announced on Monday that it will showcase extended real-world evidence on its Omnipod 5 automated insulin delivery system at the prestigious European Association for the Study of Diabetes annual meeting in Hamburg this week.
