Insulet (PODD) Stock Forecast & Price Target

Insulet's stock outlook is bolstered by a projected revenue growth from $2.7 billion in FY25 to $4.2 billion in FY28, reflecting a compound annual growth rate (CAGR) of 16.3% during this period. The company is experiencing heightened demand, as evidenced by its increased sales growth guidance to 28-29% year-over-year, coupled with a competitive edge that has allowed it to capture over 65% of new customer starts in its automated insulin delivery (AID) segment. Additionally, Insulet's gross margin guidance has been raised to over 71%, and operating margins are expected to improve to approximately 17.3-17.5%, indicating both expanding profitability and favorable conditions for long-term shareholder value creation.

Insulet faces significant challenges as its Drug Delivery segment is projected to decline sharply, with expectations of a decrease between 85-95% year-over-year, indicating severe operational difficulties within this part of the business. Furthermore, the company's expansion efforts in the U.S. have fallen short of expectations, raising concerns about the ability to drive adoption of both existing and new products amidst increasing competitive pressures and macroeconomic headwinds. Additionally, ongoing risks related to regulatory hurdles, reimbursement issues, and potential geopolitical limitations further compound uncertainties surrounding Insulet's financial outlook.