Analyst William Plovanic of Canaccord Genuity maintained a Buy rating on Tandem Diabetes Care, retaining the price target of $24.00.
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William Plovanic has given his Buy rating due to a combination of factors that highlight Tandem Diabetes Care’s potential for growth and value. The company recently reported a strong third-quarter revenue performance, which, despite some pressures on new patient starts, was bolstered by favorable pricing in the US and foreign exchange benefits overseas. Plovanic sees the company’s future growth being driven by several strategic initiatives, including the expansion in the Type 2 diabetes market, enhancements to their product lineup, and a shift towards direct sales internationally.
Plovanic also notes that Tandem’s valuation remains attractive, with a 2026 enterprise value to sales ratio of 1.1x, suggesting significant upside potential if the company executes well on its plans. The management’s focus on achieving positive adjusted EBITDA and free cash flow further supports the Buy rating, as these financial metrics are crucial for sustaining growth. Additionally, the anticipated increase in recurring revenue from the existing user base and the expected improvements in gross margins and international sales contribute to a positive outlook for Tandem Diabetes Care.
In another report released today, Barclays also maintained a Buy rating on the stock with a $55.00 price target.
TNDM’s price has also changed moderately for the past six months – from $21.320 to $13.330, which is a -37.48% drop .