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Investing.com -- Tandem Diabetes Care (NASDAQ:TNDM) stock fell 5% Wednesday morning after Citi downgraded the medical device maker to Sell from Neutral, citing intensifying competitive pressures.
Analyst Joanne Wuensch slashed the price target to $14 from $24, implying a potential 16% downside from Tuesday’s closing price of $16.62. The downgrade triggered selling in premarket trading as investors digested concerns about the company’s growth prospects.
"While the 2Q25 delivery will be imperative, commentary on competition and the impact of potential competitive bidding will be top of mind," Wuensch wrote in a note to clients. She added that competition remains stiff and sees potential pressures from competitive bidding.
The analyst expressed skepticism about Tandem’s ability to overcome these challenges in the near term. "With these competing pressures, we believe it will be difficult for TNDM to trade upwards, and likely will remain pressured," Wuensch noted.
Tandem Diabetes Care manufactures insulin delivery systems for people with diabetes, operating in a market with several established competitors. The company faces headwinds not only from existing rivals but also potential pricing pressures from competitive bidding processes in the medical device sector.
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