Analyst: Insulet On Track For Profitability In 2018

Insulet Corporation (NASDAQ: PODD) is up 80.5 percent year-over-year, and even last quarter’s bottom-line miss can’t deter the biotech’s bulls.

The Rating

BMO Capital Markets analyst Joanne Wuensch initiated coverage of Insulet Corp. with an Outperform rating and $90 price target.

The Thesis

Wuensch anticipates a turn to profitability in the second half of 2018, with a series of catalysts sustaining positive performance.

Over the next two years, Insulet is expected to profit from the rollout of the OmniPod Dash platform and Horizon Automated Glucose Control System; a push for international direct sales; penetration of the U.S. Medicare market; approved distribution of higher concentration insulin; and expansion in Type 2 diabetes, the analyst said. 

At the same time, its Omnipod product is positioned to expand in an “underpenetrated” insulin pump market and capture the share abandoned by Roche and Johnson & Johnson (NYSE: JNJ), Wuensch said. The analyst said she expects a three-year share expansion from 15.2 percent to 22.1 percent.

“Insulet is on the right side of care with its OmniPod Pump, providing an easier, more efficacious means of insulin delivery without the obstacles of traditional pumps or multiple daily injections,” she said in a Monday note. 

Price Action

Insulet shares were up 2.31 percent at $77.57 in midday trading Tuesday. 

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