PODD Reports Strong Q4 Results, Issues Achievable Guidance

Analyst Michael Weinstein of JP Morgan maintains his "overweight" rating on Insulet Corp (NASDAQ: PODD), while raising his estimates for the company. The target price for PODD is set to $16.

According to JP Morgan, Insulet reported its Q4 results ahead of the estimates on better than expected cost controls. PODD “maintained tight control of SG&A spending (-5%YOY) in the quarter, illustrating the leverage of its fixed cost structure,” the analyst says.

“We were encouraged to see the annual attrition rate drop below 10%, with the improvement coming from a reduced early drop out rate (first 30-45 days) as Insulet has increased its customer support efforts meaningfully over the past few quarters,” the analyst adds. JP Morgan has raised its EPS estimates for FY10 and FY11 from -$1.40 to -$1.25.

More Analyst Ratings here