Balanced Outlook on Tandem Diabetes Care: Growth Opportunities Amid Strategic Challenges

Analyst Larry Biegelsen of Wells Fargo maintained a Hold rating on Tandem Diabetes Care (TNDM – Research Report), retaining the price target of $20.00.

Larry Biegelsen’s rating is based on a combination of factors that reflect both opportunities and challenges for Tandem Diabetes Care. The company has shown encouraging growth in the U.S. insulin pump market, particularly with the introduction of Mobi, which has shifted the focus towards wearability. However, there is an expectation of continued variability in quarter-to-quarter performance, which suggests some uncertainty in consistent growth.
Tandem Diabetes Care is also taking a cautious approach to the full launch of its T2 product, as it navigates training new representatives, developing marketing strategies, and overcoming payer hurdles such as Medicare. While the pharmacy channel has provided a boost to revenue and margins, the company is still working on expanding coverage and negotiating with payers for the future. These factors, combined with the company’s strategic product roadmap and expected improvements in gross margins, contribute to the Hold rating, indicating a balanced view of potential growth and existing challenges.

In another report released on May 23, Citi also maintained a Hold rating on the stock with a $24.00 price target.

TNDM’s price has also changed moderately for the past six months – from $31.220 to $21.150, which is a -32.25% drop .