Oppenheimer Maintains OP Rating, $25 PT on Insulet Corporation

Oppenheimer is maintaining its $25 PT on shares of Insulet Corporation

while maintaining its Outperform rating on the stock. “We are updating our model and reiterating our Outperform rating following PODD's announcement that it will acquire Neighborhood Diabetes,” Oppenheimer writes. “Our note on 6/2 highlighted the basics of the deal. Here, we go through the model adjustments and look at some of the upside drivers. “While the shares have reacted to the additional products brought on board for distribution through ND and their impact on gross margin, we counter that the acq. enhances PODD's core OmniPod growth opportunities and immediately benefits operating income and cash flow. There is no change to the core business outlook and we continue to expect the year-end launch of the next-generation OmniPod to be a paradigm shift for the company.” Insulet Corporation closed Monday at $18.30.