UPDATE: Piper Jaffray Upgrades Insulet Corporation to Overweight on Next Generation Approval

Piper Jaffray raised its rating on Insulet Corporatio

from Neutral to Overweight and increased its price target from $21 to $27. Piper Jaffray commented, "We are raising our rating from Neutral to Overweight, following PODD's FDA 510(k) clearance for its next generation OmniPod. Our Neutral rating since launching coverage in March was predicated on FDA delays and difficulties in transitioning to the new pump. Although the conversion of PODD's customer base still comes with challenges, we believe delays in approval have provided ample time for planning the conversion. The lower cost, slimmer profiled 2nd generation insulin pump could unlock 10+ points of gross margin expansion over time within the US business, with a likely GM inflection point in Q3-13 once the majority of US customers are on the new system." Insulet Corporation closed at $21.72 on Thursday.