Bank of America Securities analyst Travis Steed reiterated a Sell rating on Tandem Diabetes Care (TNDM – Research Report) yesterday and set a price target of $18.00.
Travis Steed’s rating is based on Tandem Diabetes Care’s recent financial performance and future outlook. The company’s Q4 2024 revenue slightly missed expectations, particularly in the U.S. market where revenue fell short by 4%. This shortfall was attributed to less pronounced seasonal sales increases than usual. Additionally, the guidance for Q1 2025 U.S. revenue was below market expectations, partly due to a salesforce expansion and realignment that could cause initial disruptions.
Despite a full-year revenue forecast that exceeds market predictions, the company’s guidance for 2025 total revenue and international sales was below expectations. Tandem Diabetes Care is also facing challenges as it prepares for direct commercial operations in certain countries, which is expected to create headwinds. Furthermore, the company’s valuation appears high relative to its earnings, with an EV/EBITDA ratio significantly above typical levels. These factors combined led to the Sell rating by Travis Steed.