Hold Rating for Tandem Diabetes Care Amid Competitive and Macroeconomic Challenges

Tandem Diabetes Care (TNDM) has received a new Hold rating, initiated by Mizuho Securities analyst, Anthony Petrone.

Anthony Petrone has given his Hold rating due to a combination of factors influencing Tandem Diabetes Care’s market position and future prospects. The company is facing competitive pressures, particularly from the growing preference for patch-pump systems over traditional tubed-pump designs, which could lead to a slight decline in market share by 2025. Additionally, macroeconomic factors may drive more patients towards Pharmacy Benefit Management, introducing new pricing and competitive challenges that are not fully accounted for in current forecasts.
Despite these challenges, Tandem Diabetes Care remains a key player in the insulin pump market, with its t:slim X2 and upcoming Mobi next-generation products. However, the timing for the launch of their tubeless Mobi and Sigi patch pumps remains uncertain, potentially delaying competitive gains. The company’s shares are priced at a discount relative to historical valuations, reflecting these risks and uncertainties, leading to a Hold rating with a price target of $20.

According to TipRanks, Petrone is a 4-star analyst with an average return of 3.5% and a 44.31% success rate. Petrone covers the Healthcare sector, focusing on stocks such as ADMA Biologics, Teleflex, and Lantheus.