Stock Markets June 28, 2026 06:09 AM

Deutsche Bank Sees Value Across Diabetes Devices and Adjacent Industrials, Backing DexCom and Insulet

Bank starts coverage on diabetes-management names and selects packaging and data-center-related companies as healthcare-adjacent opportunities

By Hana Yamamoto
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Deutsche Bank has begun coverage on a set of stocks it views as attractive across the diabetes care ecosystem and in selected healthcare-adjacent areas. The bank highlights improving fundamentals in continuous glucose monitoring and insulin pump markets, names DexCom and Insulet as top picks with Buy ratings, and points to potential upside in a packaging play formed from Smurfit and WestRock assets. Tandem Diabetes Care is viewed more cautiously with a Hold rating.

Deutsche Bank Sees Value Across Diabetes Devices and Adjacent Industrials, Backing DexCom and Insulet
DXCM PODD TNDM SW
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Key Points

  • Deutsche Bank initiated coverage, highlighting improving fundamentals and attractive valuations in the continuous glucose monitoring and insulin pump markets, while also identifying healthcare-adjacent opportunities in packaging and data-center infrastructure.
  • DexCom and Insulet were both started with Buy ratings and significant upside implied by Deutsche Bank price targets; DexCom was noted for expanded insurance coverage, a 15-day sensor rollout and pediatric FDA clearance, while Insulet was highlighted for tubeless pump leadership despite a Moody’s outlook downgrade.
  • Tandem Diabetes Care was started at Hold amid execution risks during reimbursement-model transition; Smurfit Westrock was initiated as a Buy based on potential operational improvements and long-term adjusted EBITDA targets.

Deutsche Bank launched formal coverage on several equities it believes present investment opportunities tied to diabetes management and to companies with business models adjacent to healthcare. Analysts at the bank signaled greater confidence in the markets for continuous glucose monitoring (CGM) and insulin pumps, noting that recent share-price weakness has created more attractive valuations. Their notes also extend beyond pure medical-device specialists to include firms in packaging and data-center infrastructure that touch healthcare supply chains.

DexCom (NASDAQ:DXCM) was initiated with a Buy rating and an $86 price objective, which the bank says implies roughly 25% potential upside. Deutsche Bank’s analysts indicated that fears about CGM market growth have eased following the company’s recent investor day. They cited expanding insurance coverage for type-2 diabetes patients who do not use insulin, the commercial rollout of a 15-day sensor, and margin improvement as drivers that should support stronger earnings and valuation. The research note also expressed an expectation that management will revert to a more consistent beat-and-raise cadence.

Separately, DexCom announced it obtained FDA clearance to use its Stelo Glucose Biosensor in pediatric patients ages 2 and older. The company has also drawn an analyst-side upgrade: TD Cowen raised its price target on DexCom shares to $95. Market price movements reflected some investor interest in the name, with a portion of trading registering a positive intraday change.

Insulet (NASDAQ:PODD) received a Buy initiation with a $190 price target from Deutsche Bank, representing an implied upside near 37%. Bank analysts argued that recent weakness in Insulet’s share price has created what they view as an appealing entry point, with competitive concerns and the potential effects of GLP-1 drugs already reflected in the current valuation. They pointed to Insulet’s leadership position in tubeless insulin pumps and a durable growth profile, saying further gains are plausible if execution remains strong.

Credit-rating news has introduced some caution around Insulet: Moody’s revised the company outlook to negative from stable, citing concerns related to product recalls. In governance changes reported by the company, Insulet appointed Jonathan Mazelsky as an independent director to its board.

Tandem Diabetes Care (NASDAQ:TNDM) was initiated at Hold with a $15.50 price target, which Deutsche Bank estimates implies about 8% upside. The analysts acknowledged Tandem’s progress in improving margins and its strategic move toward pharmacy-based reimbursement, but they flagged remaining execution risks in the transition away from traditional durable medical equipment reimbursement. Those execution uncertainties are why the bank restrained its near-term rating despite positive operational signs.

Tandem has secured regulatory momentum abroad, receiving a CE mark in Europe for expanded indications of its insulin delivery systems. In addition, Wells Fargo recently upgraded the company’s rating to Overweight from Equal Weight.

Smurfit Westrock (NYSE:SW) was introduced with a Buy rating and a $57 price target, implying roughly 26% upside according to Deutsche Bank. The analysts argued the market is underestimating the potential to lift profitability by applying Smurfit Kappa’s operating model across WestRock’s North American assets. They emphasized disciplined capital allocation, a progressive dividend stance, and management’s long-range target of reaching about $7 billion in adjusted EBITDA by 2030.

For the first quarter of 2026, Smurfit Westrock reported earnings per share of $0.33, which missed analysts’ forecasts, while revenue came in at $7.71 billion, beating expectations. The company also completed the delisting of its shares from the London Stock Exchange.


Market context and breadth of coverage

Deutsche Bank’s coverage underscores a focus on the diabetes device market where CGMs and insulin pumps are central themes. The research team framed several ideas as either direct healthcare plays or healthcare-adjacent opportunities - the latter category including packaging and data-center infrastructure assets that support distribution, logistics and digital health platforms.

Observed intraday price moves for the names discussed included modest gains for DXCM, PODD, TNDM and SW during reported sessions.


Analytical takeaway

Deutsche Bank’s initiation notes emphasize valuation opportunity after recent share weakness, product and reimbursement developments that could expand addressable markets, and company-specific operational levers such as margin improvement and capital allocation. At the same time, the bank flagged areas of uncertainty - notably execution risk for companies undergoing reimbursement transitions and credit/outlook pressures tied to product issues.

Risks

  • Execution risks tied to Tandem’s shift from durable medical equipment reimbursement to a pharmacy-based model could limit near-term upside - this impacts the medical-device and reimbursement sectors.
  • Credit and product-quality concerns have prompted a negative outlook from Moody’s on Insulet, highlighting regulatory and recall-related risks for device makers.
  • Smurfit Westrock’s near-term profitability may be uncertain despite long-term targets, given recent earnings-per-share shortfalls even as revenue exceeded expectations; this affects packaging and industrial sectors.

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