Analyst Josh Jennings of TD Cowen maintained a Buy rating on Tandem Diabetes Care, reducing the price target to $20.00.
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Josh Jennings has given his Buy rating due to a combination of factors including Tandem Diabetes Care’s strong revenue performance and promising portfolio. Despite the company lowering its 2025 US sales guidance, Tandem’s worldwide revenue for the quarter exceeded expectations, showcasing a 9% year-over-year increase. This indicates a solid performance in both US and international markets, with US sales also experiencing a 9% growth.
Jennings acknowledges the competitive pressures in the US market but remains optimistic about Tandem’s long-term potential, particularly due to its robust pipeline. The company’s gross margin improvement to 52% from 51% last year further supports this positive outlook. Although there are challenges, Jennings believes that Tandem’s strategic initiatives and product offerings position it well for future growth, justifying the Buy rating.