Investing.com — Deutsche Bank initiated coverage on several healthcare stocks, highlighting opportunities in the diabetes management sector while also identifying value in packaging and data center infrastructure plays.
The firm’s analysts expressed growing confidence in the continuous glucose monitoring and insulin pump markets, citing improving fundamentals and attractive valuations following recent share price weakness. The coverage also extended beyond traditional healthcare to include companies with healthcare-adjacent business models.
1. DexCom (NASDAQ:DXCM) was initiated with a Buy rating and an $86 price target, implying about 25% upside. Analysts said concerns surrounding continuous glucose monitoring market growth are easing following the company’s recent investor day, with expanding insurance coverage for type-2 non-insulin diabetes, the rollout of its 15-day sensor, and improving margins expected to support stronger earnings and valuation. They also see management returning to a consistent beat-and-raise cadence.
Recently, DexCom announced it received FDA clearance for pediatric use of its Stelo Glucose Biosensor for children ages 2 and older. In other news, TD Cowen raised its price target on the company’s shares to $95.
2. Insulet (NASDAQ:PODD) also received a Buy rating with a $190 price target, suggesting 37% upside. Analysts believe recent share weakness has created an attractive entry point, arguing that competitive concerns and the impact of GLP-1 drugs are already reflected in the valuation. They expect the company’s leadership in tubeless insulin pumps and durable growth profile to support further gains as execution remains strong.
Insulet’s outlook was revised to negative from stable by Moody’s, which cited concerns related to product recalls. The company also appointed Jonathan Mazelsky to its board of directors as an independent director.
3. Tandem Diabetes Care (NASDAQ:TNDM) was initiated at Hold with a $15.50 price target, representing 8% upside. While analysts praised the company’s progress in improving margins and transitioning toward a pharmacy-based reimbursement model, they cautioned that execution risks remain during the shift from traditional durable medical equipment reimbursement, limiting near-term upside.
Tandem Diabetes Care received a CE mark approval in Europe for expanded indications of its insulin delivery systems and also received a rating upgrade to Overweight from Equal Weight by Wells Fargo.
4. Smurfit Westrock (NYSE:SW) was initiated with a Buy rating and a $57 price target, implying approximately 26% upside. Analysts believe the market is underestimating the company’s ability to improve profitability by applying Smurfit Kappa’s operational model across WestRock’s North American assets. They also pointed to disciplined capital allocation, a progressive dividend policy, and a long-term goal of reaching about $7 billion in adjusted EBITDA by 2030.
For its first quarter of 2026, Smurfit Westrock reported earnings per share of $0.33, which fell short of analyst forecasts, while its revenue of $7.71 billion exceeded expectations. The company also completed the delisting of its shares from the London Stock Exchange.
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