Insulet upgraded at Oppenheimer despite recent surge on FDA approval for Omnipod 5
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Following more than 18% rise on Friday in reaction to its announcement on the FDA approval of Omnipod 5, Insulet (PODD
+5.2%) is extending gains after Oppenheimer upgraded the stock to Outperform from Perform.
The firm sees further upside opportunities for the med-tech company in the medium term with the potential overseas expansion of Omnipod 5. However, citing a recent multiple contraction in the peer group, the analysts led by Steven Lichtman have lowered its price target to $275 from $300 per share to imply a premium of ~19.3% to the last close.
The FDA approval is also a positive on DexCom (NASDAQ:DXCM), the maker of Continuous Glucose Monitoring (CGM) System for Omnipod 5, the team added, noting a potential expansion for the company among patients opting for tubeless pump therapy.
For Insuletâs rival Tandem Diabetes (TNDM
+2.5%), Lichtman and the team do not rule out further share gains in the near term. ââ¦.For the whole diabetes group, market opportunities remain solid and under-penetrated, increasingly in Type 2 diabetes,â the analysts conclude.
See how Insulet (NASDAQ:PODD) has performed compared to its peers in the field of automated insulin delivery systems.