Stifel maintains Tandem Diabetes Care stock Buy rating, $60 target

On Monday, Stifel analysts maintained their Buy rating and $60.00 price target for Tandem Diabetes Care (NASDAQ:TNDM) shares, representing significant upside potential from the current price of $20.29. According to InvestingPro data, analyst targets for the stock range from $18 to $75, with the company currently valued at $1.35 billion. Following recent meetings in London with Tandem’s CEO John Sheridan and CAO Susan Morrison, Stifel’s Matthew Blackman provided insights into the company’s performance and prospects.

The discussions highlighted Tandem’s fourth-quarter performance in the U.S., which did not meet expectations. However, management believes the observed decline in late December was a temporary setback rather than an indication of shifting competitive dynamics. The company’s outlook for 2025 was also examined, acknowledging several challenges, such as expanding the sales force and transitioning to direct operations in Europe, but not factoring in significant contributions from new products like the T2, Libre, Android, or the OUS Mobi.

Beyond the competitive landscape, several key points emerged from the meetings. The newly approved and launched Control-IQ+ algorithm features an easy setup process, which could facilitate adoption by physicians who are not endocrinologists. Moreover, while the focus has often been on the company’s insulin pumps, there may be potential to monetize the transition of the installed pump user base to pharmacy-supplied consumables.

Additionally, while the T2 diabetes segment is included in Tandem’s guidance, it does not anticipate a significant increase from the historical range of 5-10% of quarterly pump shipments. In a forward-looking statement, Tandem expressed expectations to develop a fully closed-loop system within this decade, with research and development efforts already in progress.

Tandem Diabetes Care’s shares continue to be watched closely by investors as the company navigates through market challenges and capitalizes on new opportunities within the diabetes care technology sector. The company maintains a healthy financial position with a current ratio of 2.93, indicating strong liquidity. For deeper insights into Tandem’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Tandem Diabetes Care has reported significant findings from a pivotal trial of its Control-IQ+ automated insulin delivery technology for type 2 diabetes patients. The study, published in The New England Journal of Medicine, showed a 0.9% reduction in hemoglobin A1c levels for users of the technology, compared to a 0.3% decrease in the control group. Additionally, the time in range improved by 16%, equating to an additional 3.8 hours per day of blood glucose levels within the target range.

Meanwhile, several financial analysts have revised their outlook on Tandem Diabetes Care. Morgan Stanley (NYSE:MS) downgraded the company’s stock from Overweight to Equalweight, citing concerns over modest revenue growth and competitive pressures. Citi also downgraded the stock from Buy to Neutral, despite the company’s fourth-quarter revenue exceeding expectations. Bernstein further downgraded the stock to Market Perform, pointing to market share loss and increased competition as key factors.

These recent developments highlight both the technological advancements and the financial challenges facing Tandem Diabetes Care.

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