Analysts Split on MedTech, Back Aerospace

Analyst sentiment diverged sharply across sectors on Wednesday. Medical devices drew the most contrasting calls.

Insulet Corporation took a consensus downgrade. The insulin pump maker now sits at a lower average target price of $228. Short interest is modest at 6.6% of free float. But the downgrade signals concern about competitive pressure in the diabetes device market.

Waters Corporation moved the other way. The analytical instruments firm earned a consensus upgrade. Its average target rose to $432 from $417. The $39bn company has kept short sellers at bay, with just 3.8% of free float sold short.

The biggest individual target lift went to TransDigm Group. UBS analyst Gavin Parsons raised his price target to $1,695 from $1,585 — a $110 jump. He maintained a Buy rating. The aerospace components group carries a $71bn market cap. Parsons' call implies further upside for a stock that has already rewarded long-term holders well.

Elsewhere, Booking Holdings and Emerson Electric both received target price increases. Travel and industrials continue to attract cautious optimism from the Street.

Henry Schein also got a target bump. Its average consensus price lifted to $97.56 from $95.31.