Insulet Corporation (PODD) PT Cut at Wedbush

Wedbush analyst Tao Levy lowered its price target on Insulet Corporation (NASDAQ: PODD) to $34.00 (from $43.00) but maintained an Outperform rating, saying the turnaround is taking longer than expected.

Levy commented, "Turnarounds unfortunately take longer than one would like, which is the case with PODD, but we also continue to see the merits of the technology and expect growth to return to the US OmniPod business in 2H15. As we digest the new data points provided on the call and revisit our model, there is one item that stands out to us. With the rush to manufacture the second generation OmniPod system (US launch in early 2013) and ensuing challenges to generate enough inventory, prior management lost control of how much product was in the channel. As a result, while sales were growing rapidly due to distributors both in the US and OUS purchasing as many OmniPods as possible, this did not reflect new patient additions, and we are now seeing this reflected in lower OmniPod sales."

For an analyst ratings summary and ratings history on Insulet Corporation click here. For more ratings news on Insulet Corporation click here.

Shares of Insulet Corporation closed at $32.91 yesterday.

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