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Investing.com - CFRA has lowered its price target on Tandem Diabetes Care (NASDAQ:TNDM) to $22.00 from $33.00 while maintaining a Hold rating, citing discount to historical levels due to GLP-1 risks. The stock, currently trading near its 52-week low of $9.98, has declined over 70% in the past year. According to InvestingPro analysis, the company appears undervalued at current levels.
The research firm widened its 2025 net loss forecast for Tandem to -$2.23 from -$1.44 and its 2026 forecast to -$0.86 from -$0.65, reflecting ongoing profitability challenges for the diabetes device maker.
Tandem reported second-quarter earnings per share of -$0.48, unchanged from the same period last year but missing the S&P Capital IQ consensus estimate by $0.08. Sales reached $240.7 million, up 8% year-over-year, while adjusted EBITDA was -$1.8 million, representing -1% of sales.
The company has lowered its adjusted EBITDA margin guidance for 2025 from "approximately 3%" to "approximately -5%" of sales, which includes an 8 percentage point impact for an acquired in-process research and development charge.
CFRA expects international sales to continue growing faster than U.S. sales, though it anticipates a $10 million headwind in 2025 associated with Tandem’s preparation for direct commercial operations in select countries.
In other recent news, Tandem Diabetes Care reported its second-quarter 2025 earnings, revealing a larger-than-expected loss per share. The company’s earnings per share came in at a loss of $0.78, missing the anticipated loss of $0.40. Despite this, the company experienced a revenue surprise, with international sales outperforming expectations, although U.S. sales did not meet projections. Following these results, TD Cowen lowered its price target for Tandem Diabetes Care to $20, citing concerns over U.S. sales, but maintained a Buy rating on the stock. Barclays (LON:BARC) also adjusted its price target from $53 to $51, while keeping an Overweight rating, acknowledging the company’s strong international sales performance. Tandem Diabetes Care has also cut its 2025 U.S. sales guidance to $700 million, down from the previous range of $725 million to $730 million. These developments reflect the mixed performance seen in Tandem’s recent earnings and sales reports.
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