Insulet upgraded to Buy from Neutral at Citi

Citi analyst Joanne Wuensch upgraded Insulet to Buy from Neutral with a price target of $265, down from $273. Baird this morning downgraded Insulet to Neutral from Outperform. Citi cites valuation for the upgrade, saying Insulet’s valuation has “pulled in significantly.” Looking forward, the company has submitted its 510k application to the FDA for its iOS app on the iPhone, is working to integrate Dexcom’s G7 and Abbott’s L2 into its automated insulin delivery systems, has begun the launch of Omnipod 5 in the U.K. and is on track for launch in Germany in early Fall, the analyst tells investors in a research note. Citi reduced Insulet’s valuation multiple to reflect the GLP-1 overhang and a more normalized high-growth med tech multiple.