Tandem Diabetes Care (TNDM) has received a new Hold rating, initiated by Leerink Partners analyst, Mike Kratky.
Geoff Meacham has given his Hold rating due to a combination of factors concerning Tandem Diabetes Care’s recent developments and market conditions. Meacham acknowledges Tandem’s launch of the Mobi insulin pump as a strategic step, noting its compact size, on-body adhesive option, and advanced Control-IQ AID technology. Despite these promising product features, he expresses concern over Tandem’s limited pharmacy access, which may restrict the Mobi’s uptake among Type 2 diabetes patients. Additionally, he anticipates that the Omnipod 5, produced by Insulet Corporation, with its tubeless design, will likely continue to capture market share through 2024.
Meacham remains cautious, choosing not to adjust his rating until Tandem’s fourth-quarter earnings are disclosed, which could provide further insights into the company’s financial health and the Mobi’s market reception. While he suggests that a successful Mobi launch could significantly boost Tandem’s growth and stock performance, he prefers to stay neutral until more data becomes available. This prudence stems from both the competitive landscape and the need for more evidence of Mobi’s commercial success, thus justifying the Hold rating at this juncture.
In another report released on February 5, Stifel Nicolaus also maintained a Hold rating on the stock with a $24.00 price target.
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Tandem Diabetes Care (TNDM) Company Description:
Tandem Diabetes Care, Inc. engages in the design, development, and commercialization of products for people with insulin-dependent diabetes. Its flagship product, t:slim X2 Insulin Delivery System, operates as a small insulin pump. The company was founded by Paul M. DiPerna on January 27, 2006 and is headquartered in San Diego, CA.
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