Insulet, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Travis Steed from Bank of America Securities reiterated a Buy rating on the stock and has a $360.00 price target.
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Travis Steed has given his Buy rating due to a combination of factors that emerged from Insulet’s recent Investor Day. The company unveiled a robust three-year long-range plan (LRP) projecting a 20% compound annual growth rate (CAGR) in revenue, alongside a 100 basis points annual operating margin expansion and a 25%+ adjusted earnings per share (EPS) CAGR. These financial targets are supported by strategic investments, including a $1 billion commitment to research and development, and operational efficiencies primarily through SG&A leverage.
Furthermore, Insulet’s upcoming product innovations, such as the Omnipod 6, are expected to enhance connectivity and usability, offering significant improvements in diabetes management. The anticipated advancements, including algorithm improvements and new sensor integrations, are poised to drive growth and market expansion. These developments, coupled with the company’s strong customer base both in the US and internationally, underpin the positive outlook and justify the Buy rating with a price objective of $360.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $380.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PODD in relation to earlier this year.