Analyst Ratings January 27, 2026

TD Cowen Starts Coverage of Beta Bionics With Hold, Cites Modest Upside

Analyst sees continued revenue momentum from iLet adoption but questions valuation support for a premium multiple

By Nina Shah BBNX
TD Cowen Starts Coverage of Beta Bionics With Hold, Cites Modest Upside
BBNX

TD Cowen initiated coverage of Beta Bionics (NASDAQ:BBNX) with a Hold rating and a $17.00 price target, noting solid early commercial traction for the iLet system but expressing concerns that projected revenue gains may not justify an outsized valuation. The firm highlighted strong recent top-line growth alongside signs of a potential slowdown in new prescription share expansion.

Key Points

  • TD Cowen initiated coverage of Beta Bionics with a Hold rating and a $17.00 price target; current price cited as $15.46 and other analyst targets range from $25 to $40 - Markets/Investors, Healthcare equipment sector
  • Company reported roughly 10% NRx market share and 67% revenue growth over the last twelve months, with TD Cowen expecting continued adoption driven by the iLet device and pipeline products - MedTech, Healthcare sector
  • Preliminary Q4 2025 revenue of at least $32 million, up 56% year-over-year; new patient starts rose 36% to 5,581 but missed the Wall Street forecast of 5,816 - Healthcare providers and medical device investors

TD Cowen has opened coverage on Beta Bionics, Inc. (NASDAQ:BBNX), assigning a Hold rating and setting a price objective of $17.00. That target implies only limited upside from the firm’s cited current share price of $15.46. TD Cowen’s initiation comes amid a range of price targets from other analysts spanning $25 to $40, according to InvestingPro data.

The research note points to a successful debut year for Beta Bionics as a publicly traded company, with the firm highlighting both financial upside and the capture of roughly 10% of new prescription - or NRx - market share. The company’s reported results reflect what TD Cowen described as robust commercial momentum, including 67% revenue growth over the most recent twelve-month period.

TD Cowen’s view is that revenue outperformance could persist as the company’s iLet device differentiates itself in the market and as pipeline programs advance. The firm specifically cited pipeline initiatives such as patch and bihormonal technologies as contributors to the adoption narrative.

However, the analyst team tempered enthusiasm with caution. TD Cowen’s survey work indicates there may be a deceleration in the pace of NRx share gains for Beta Bionics. While the firm’s financial modeling allows for upside in 2026 revenue, analysts noted that such upside might not be large enough to sustain an outsized valuation multiple.


Recent company disclosures provided additional context to TD Cowen’s initiation. Beta Bionics pre-announced preliminary fourth-quarter 2025 revenue of at least $32 million, a 56% increase year-over-year and above consensus analyst expectations. At the same time, the company reported that new patient starts rose 36% year-over-year to 5,581, which nonetheless trailed Wall Street’s forecast of 5,816 new starts.

Market reactions among research firms have varied. Stifel kept a Buy rating on the stock and projects full-year 2025 revenue to exceed $100 million, a figure materially higher than company guidance of $80-85 million. By contrast, BofA Securities downgraded Beta Bionics from Buy to Neutral, citing valuation concerns even though the pre-announced fourth-quarter revenues surpassed market expectations by 11%.

Piper Sandler raised its price target on Beta Bionics to $32.00 from $26.00, pointing to strong execution on key metrics and highlighting the company’s performance in new patient starts, notably through pharmacy channels. Stifel also reiterated its Buy view and noted that the pharmacy business model for durable insulin pumps has outperformed the firm’s internal expectations.

Overall, TD Cowen’s initiation frames Beta Bionics as a company with significant top-line momentum and promising product differentiation, but with outstanding questions about the sustainability of share gains and the degree of valuation support from projected revenue trajectories.

Risks

  • Survey data from TD Cowen suggests potential deceleration in new prescription share gains for Beta Bionics, which could slow revenue momentum - impacts MedTech and Healthcare equipment markets
  • TD Cowen flags that potential 2026 revenue upside may not be sufficient to support an outsized valuation multiple, presenting valuation risk to investors - impacts equity valuations in healthcare/medical devices
  • Reported slowdown in new patient starts relative to Wall Street’s forecast (5,581 actual vs 5,816 forecast) introduces execution risk that could affect near-term expectations - impacts market sentiment and investor positioning

More from Analyst Ratings

Palantir Gains After Lofty 2026 Guidance; Analysts Split on Outlook Feb 2, 2026 Freedom Capital Markets Starts Coverage of Nebius Group With Buy Rating, $108 Target Feb 2, 2026 Clear Street Starts Coverage on Caribou Biosciences with Buy Rating and $13 Target Feb 2, 2026 Goldman Keeps OLN Neutral at $22 as Olin Signals Rough Q1, Cost Cuts to Cushion Results Feb 2, 2026 Aletheia Capital Starts Coverage on Teradyne With Buy Rating, $400 Target Feb 2, 2026