JPMorgan cuts Insulet to neutral on slowing U.S. growth, trims target by 45%

Investing.com -- JPMorgan downgraded insulin pump maker Insulet to Neutral from Overweight, citing slowing U.S. sales growth, rising attrition among Type 2 diabetes patients and a weaker-than-expected outlook for 2027, while slashing its price target to $152 from $275.

The brokerage said it no longer sees an attractive risk-reward profile despite the company’s strong second-quarter earnings, arguing that decelerating new patient additions, higher Type 2 patient attrition and looming competition in the patch pump market could weigh on growth over the next several quarters. It also removed the stock from its Analyst Focus List.

JPMorgan said management’s early commentary for 2027 appeared too optimistic, with expectations for U.S. and worldwide organic sales growth that the brokerage believes do not adequately account for continued business deceleration, competitive pressures and reimbursement risks. The firm expects investors to remain cautious until management demonstrates that growth has stabilized and earnings expectations have been reset.

The brokerage lowered its 2027 revenue forecast by 7.6% to $3.67 billion and cut its adjusted EPS estimate by 8.8% to $7.62, while making only modest changes to its 2026 forecasts.

JPMorgan said the biggest concern is weakness in the U.S. Type 2 diabetes business, which prompted the company to reduce its 2026 organic sales growth outlook. Although second-quarter earnings beat expectations and profitability guidance improved, the brokerage said investors are focused on slowing top-line growth rather than margin expansion.

The bank noted that international performance remained solid, supported by strong Omnipod adoption and expansion into markets such as Spain and Australia. However, it believes those positives are likely to be overshadowed by slowing U.S. growth and intensifying competition expected to emerge in 2027.

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