Insulet Hits It Out of the Park With Omnipod 5; We've Raised Our Fair Value Estimate

Insulet posted stellar third-quarter results that exceeded our expectations, and we’re raising our fair value estimate to $216 per share, up from $190, as we incorporated more optimistic estimates for Omnipod 5 particularly in 2023 and 2024. The firm continues to invest in its commercial organization to support the rollout of Omnipod 5, which we view as worthy of further investment because we think this new tubeless pump and its hybrid closed loop function offers a compelling user experience that the competitive traditional pumps do not. Insulet’s ability to consistently engineer innovation underscores the intangible assets that serve as the foundation for the firm’s narrow economic moat.