On Friday, TD Cowen reiterated a Buy rating on Insulet (NASDAQ:PODD) Corporation (NASDAQ:PODD) shares and increased the price target from $264.00 to $324.00. Analyst Joshua Jennings at TD Cowen supports this decision with the projection of strong future performances by the company, particularly noting the potential for Insulet to surpass the firm's revenue and EPS estimates.
According to InvestingPro data, Insulet demonstrates strong financial health with a "GREAT" overall score and impressive revenue growth of 27.4% over the last twelve months.
The new price target is based on a consistent EV/sales multiple of 10 applied to the analyst's 2025 revenue estimate of $2.46 billion. Jennings believes that Insulet's fourth-quarter guidance seems conservative, which suggests the possibility of the company outperforming the estimates of $586 million in revenue and $1.06 earnings per share.
These figures are already closely aligned with broader market expectations, which forecast revenues of $583 million and earnings of $1.03 per share. With a robust gross profit margin of 70% and strong cash flows, InvestingPro analysis reveals that Insulet maintains a healthy financial position with moderate debt levels.
Insulet is expected to share its 2025 guidance in the upcoming fourth-quarter report on February 20, 2025. The company has already hinted at significant growth in new patient starts within the U.S., which is anticipated to have a more pronounced annuity-type impact from next year onwards.
For deeper insights into Insulet's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
Jennings highlighted three primary growth drivers for Insulet leading up to 2025. These include the U.S. type 2 diabetes label, geographic expansion efforts in Europe, and ongoing product innovation. Among the innovations are the compatibility of the O5 insulin pump with the Libre glucose monitoring system and the launch of a new O5 iPhone application.
Investors are now looking ahead to the fourth-quarter report for further insights into Insulet's performance and the detailed guidance for the year 2025, which will provide a clearer picture of the company's long-term growth trajectory.
In other recent news, Boston Scientific Corporation (NYSE:BSX) saw its price target increased by BTIG from $97.00 to $101.00, anticipating significant growth in U.S. revenue from Farapulse by 2025.
Analysts at BTIG revised their revenue forecast for Farapulse to approximately $1.5 billion by 2025, up from the previous estimate of around $1 billion. Meanwhile, Insulet Corporation has been awarded $452 million in damages following a lawsuit against EOFlow Co., Ltd. and several other defendants for misappropriation of trade secrets.
In the Medical (TASE:PMCN) Supplies & Devices sector, RBC Capital Markets projected a favorable outlook for 2025, highlighting 'quality with catalysts' stocks like Boston Scientific and Intuitive Surgical (NASDAQ:ISRG). In the healthcare sector, Piper Sandler analysts expressed optimism for several companies, including ATEC, ATRC, and KIDS, anticipating positive fiscal year outlooks.
On the other hand, Barclays (LON:BARC) raised its price target for Insulet Corporation to $234 from $220 following a strong third-quarter performance, primarily due to growth in international sales and drug delivery revenues.
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