Analyst Mike Kratky from Leerink Partners reiterated a Buy rating on Tandem Diabetes Care and decreased the price target to $32.00 from $38.00.
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Mike Kratky has given his Buy rating due to a combination of factors that suggest a positive risk/reward scenario for Tandem Diabetes Care. Despite some cautiousness following the 2Q25 earnings report, the reiteration of an Outperform rating is based on the potential for outperformance driven by reset expectations and favorable catalysts such as the T2 and pharmacy penetration, along with the anticipated launch of Mobi Tubeless in 2026. Additionally, the introduction of t:slim X2 supplies through pharmacies starting in 4Q25 is expected to provide a boost to revenue and gross margins.
Moreover, the company’s performance in Europe remains strong despite challenges, and there is optimism for improved pricing in 2026 following a transition to direct sales. The valuation reflects a limited probability of sustainable growth, yet there is confidence in the company’s ability to execute on upcoming opportunities, particularly in the latter half of 2025. These factors collectively contribute to the Buy rating, as they present a path for potential growth and profitability.
According to TipRanks, Kratky is a 4-star analyst with an average return of 7.0% and a 39.23% success rate. Kratky covers the Healthcare sector, focusing on stocks such as NeuroPace, Medtronic, and Intuitive Surgical.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $20.00 price target.