Morgan Stanley analyst Patrick Wood maintained a Hold rating on Tandem Diabetes Care yesterday and set a price target of $13.00.
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Patrick Wood’s rating is based on several strategic initiatives and market dynamics surrounding Tandem Diabetes Care. The company is focusing on expanding its pharmacy access for t:slim supplies, which is expected to significantly boost revenue and profitability while reducing patient co-pays over the next few years. This strategic move is anticipated to have a substantial impact given the large installed base of t:slim users. Additionally, Tandem is making strides in the Type 2 diabetes market, with promising pilot results and plans to broaden its reach across more U.S. territories.
Another factor influencing the Hold rating is Tandem’s salesforce transition efforts, including a realigned incentive structure in the U.S. and plans to establish a direct sales approach in certain international markets by 2026. While these changes are expected to enhance productivity and margins, they will take time to fully implement. Furthermore, upcoming product launches, such as the Mobi Tubeless in 2026 and the recently approved 7-day extended wear for SteadiSet, are poised to strengthen Tandem’s competitive position. However, the company faces challenges in maintaining market share and returning to profitability amidst intensifying competition, which contributes to the Hold rating.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TNDM in relation to earlier this year.