Barclays has downgraded DexCom and Insulet, two leading diabetes device makers, to Underweight as it anticipates intensifying competition in 2026 and 2027. This move reflects growing concerns about the impact of competition on valuation multiples and performance within the MedTech sector. Barclays points to increasing competitive pressure in both continuous glucose monitoring and automated insulin delivery.

For DexCom, the bank highlights Abbott's steady market share gains, particularly in insulin-intensive diabetes. Abbott's dual-analyte sensor and OEM agreement with Medtronic are expected to further intensify competition, potentially pressuring DexCom's valuation. For Insulet, Barclays identifies emerging threats from competitors like Tandem Diabetes Care and Medtronic, which are set to launch new tubeless patch pump systems.

This competition is expected to weigh on Insulet's valuation multiple. Despite these concerns, Barclays does not foresee an immediate slowdown in sales for either company. The bank's cautious stance is part of a broader strategy to favor MedTech stocks with clearer paths to multiple recovery and identifiable catalysts.

Barclays has also named Globus Medical, Cooper Companies, and Edwards Lifesciences as its top Overweight picks for 2026, while maintaining a more cautious outlook on several other MedTech stocks.