Tandem Diabetes Care: Strong Performance, Promising Outlook, and Buy Rating Affirmed by William Plovanic

Canaccord Genuity analyst William Plovanic maintained a Buy rating on Tandem Diabetes Care (TNDM – Research Report) yesterday and set a price target of $59.00.

William Plovanic has given his Buy rating due to a combination of factors that highlight Tandem Diabetes Care’s strong performance and promising outlook. The company delivered a solid first quarter, surpassing both Canaccord Genuity’s and consensus estimates with a revenue of $234.4 million, marking a 22% year-over-year increase. This growth was primarily driven by strong US and international supplies revenue, despite a slight underperformance in pump revenue. Additionally, the company’s new patient starts in the US exceeded expectations, indicating a positive long-term trend.
Plovanic also notes that Tandem’s management has reaffirmed its guidance, reflecting a conservative approach in a challenging macroeconomic environment. The company’s attractive valuation, trading at approximately 1.0x its 2026 EV/sales, combined with multiple catalysts such as a robust product pipeline and opportunities in the Type 2 diabetes market, further support the Buy rating. Furthermore, Tandem’s management anticipates reaching a 60% gross margin by 2026, driven by factors like Mobi’s margin accretion and increased pharmacy pricing. These elements, along with the company’s growing free cash flow and potential for operating margin expansion, contribute to a favorable outlook for Tandem Diabetes Care.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $30.00 price target.

Based on the recent corporate insider activity of 61 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.