Tandem Diabetes Care: Strong Q1 Performance Amid Cautious Outlook and Hold Rating

Wells Fargo analyst Larry Biegelsen maintained a Hold rating on Tandem Diabetes Care (TNDM – Research Report) yesterday and set a price target of $20.00.

Larry Biegelsen’s rating is based on a combination of factors that reflect both positive and cautious elements in Tandem Diabetes Care’s performance and outlook. The company delivered a strong first-quarter performance, surpassing sales expectations with significant growth in pump shipments and an increase in US lives covered through pharmacy. However, despite this strong start, the company maintained its 2025 sales guidance, indicating a cautious approach due to the dynamic macroeconomic environment.
Additionally, Tandem Diabetes Care’s management suggested that second-quarter sales might fall below previous consensus estimates, with US sales expected to grow modestly and international sales remaining relatively flat. While the company anticipates improvements in gross margins by 2026 through various strategic initiatives, the near-term outlook remains uncertain. These mixed signals, along with a slight reduction in the price target, contribute to the Hold rating, suggesting that while there is potential for growth, investors should be cautious given the current market conditions and company forecasts.

TNDM’s price has also changed dramatically for the past six months – from $32.360 to $16.850, which is a -47.93% drop .