Goldman Sachs initiates coverage of medtech stocks Insulet and Dexcom at Buy
Investing.com -- Goldman Sachs has initiated coverage of diabetes technology stocks Insulet (NASDAQ:PODD) and Dexcom (NASDAQ:DXCM) with Buy ratings, citing strong long-term growth prospects in both the insulin delivery and continuous glucose monitoring (CGM) markets.
In a research note, Goldman Sachs described the diabetes technology market as “at a crossroads,” with growth shifting from its core Type 1 diabetes patient base toward the broader Type 2 diabetes population and even consumer markets.
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“We see Insulet as well positioned to accelerate market share capture given its unique form factor (patch vs durable), pharmacy access, and Type 2 indication,” the analysts wrote. They added that the company’s valuation sits “at the high end of growth medtech.”
Dexcom also earned a Buy rating, with Goldman noting that while the stock has underperformed over the past year, falling 43% relative to the S&P 500, “we view forward estimates as appropriately re-calibrated.”
The analysts expect “upside to 2025 top-line expectations,” though they acknowledged caution on gross margins due to “supply-related issues in 1H.” Still, they believe “more steady execution should unlock share value from here.”
Goldman sees the insulin pump market growing 11.4% annually in volume and 12.7% in dollars through 2028, driven by further penetration into the Type 1 population and expansion into the Type 2 multiple daily injector segment.
“We expect patch pump technology to become the primary form factor for insulin pumps,” the firm said, projecting a shift from 30% patch pump share in 2024 to 40% by 2028.
Goldman also initiated coverage on Beta Bionics (BBNX) with a Neutral rating and maintained existing ratings on Abbott (ABT, Buy) and Tandem (TNDM, Neutral).
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