Leerink Partners Raises Price Target on Insulet (PODD) Following 2Q15 Results
Leerink Partners reiterated an Outperform rating on Insulet Corporation (NASDAQ: PODD), and raised the price target to $44.00 (from $40.00), following the company's 2Q15 earnings report. PODD reported 2Q15 sales of $75.6M, in line with the July 29th preannouncement, and coming in ~$4M ahead of the Street.
Analyst Danielle Antalffy commented, "Last night, PODD reported 2Q15 sales of $75.6M (+5%y/ y) -- in line with the July 29th preannouncement -- coming in ~$7M ahead of us and ~$4M above the Street. Upside was driven by: (1) Strongerthan-expected drug delivery sales as the collaboration with AMGN (MP) does appear to be tracking better than expected, beating us by ~$5M and consensus by ~$3M; and (2) An acceleration in U.S. OmniPod new patient adds -- up ~20% this quarter vs. what we estimate to be a low double-digit increase in 1Q15 -- that drove a ~$1M beat relative to us and the Street. We are particularly encouraged by the U.S. OmniPodd new patient adds in the quarter -- now the 2nd consecutive quarter of sequentially higher new patient adds and the 3rd highest new patient add quarter in the company's history -- as we view this as a leading indicator of longer-term growth trends. Despite the strong new patient add growth, U.S. OmniPod sales came in at just 1%, in large part due to a tough y/ y comparable tied to 2Q14 inventory stocking. In the back half of the year, management expects U.S. OmniPod sales to low-teens growth y/ y as comparables ease. PODD also announced that the independent accounting review the company recently initiated tied to 2014 revenue recognition found no material errors."
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Shares of Insulet Corporation closed at $34.07 yesterday.