Insulet (PODD) Sales Momentum Appears Sustainable - Leerink; PT to $50
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Leerink Partners analyst Danielle Antalffy reiterated an Outperform rating but trimmed her price target on Insulet Corporation (NASDAQ: PODD) to $50.00 (from $55.00) following strong results, saying momentum appears sustainable, with profitably close.
Antalffy commented, "Another strong quarter of outperformance supports our recent view that PODD is shaping up to be – if it isn’t already – one of the cleanest execution stories within our SMID-cap coverage universe. In 3Q16, PODD again reported a solid quarter of sales outperformance -- and now its 5th consecutive quarter of 20%+ new patient growth. Perhaps just as importantly, PODD delivered positive EBIT in the quarter. With CEO Sullivan now having “righted” the foundation of the company since taking the helm in September 2014, PODD, in our view, is now well positioned to sustain if not accelerate recent momentum across all businesses."
The analyst added, "PODD management did note that given what will be a sustainably-higher gross margin profile, there is additional flexibility for incremental investment in the business. While we reflect some of this incremental reinvestment from higher gross margins in our updated projections, we still believe there is substantial room for upside. And from a catalyst perspective, PODD's upcoming analyst meeting will lay out the company's path to ~$1B in sales, as well as ongoing drivers of margin expansion and pipeline."
Shares of Insulet Corporation closed at $30.73 yesterday.
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