Insulet initiated with a Neutral at UBS

In a sector note on U.S. Medical Supplies and Devices, UBS initiated coverage of Insulet with a Neutral rating and $328 price target. Despite a strong growth trajectory, with Insulet shares trading a full turn above its 5-year historical averages and well above the ~9x EV/sales average multiple for the comparable SMID-Cap group from a sales growth perspective, the bullish Omnipod 5 outlook seems largely priced in, the analyst tells investors in a research note. UBS believes there is risk of multiple contraction to more in line with historical levels as growth decelerates in 2024 and beyond.