Larry Biegelsen, an analyst from Wells Fargo, maintained the Hold rating on Tandem Diabetes Care (TNDM – Research Report). The associated price target is $21.00.
Larry Biegelsen has given his Hold rating due to a combination of factors including the latest earnings report and Tandem Diabetes Care’s future prospects. The company’s fourth-quarter sales outperformed expectations slightly, driven by U.S. pump shipments, which indicates a positive trend. However, year-over-year growth was down, and the U.S. market showed a decline in pump shipments. Despite this, the guidance for 2024 suggests a steady revenue growth of 10%, which aligns with market expectations. The growth is anticipated to be driven by U.S. renewals, the introduction of the Mobi pump, and growth in new pump shipments outside the United States (OUS), which may account for the Hold rating rather than a more bullish outlook.
The report also notes that the revenue growth for 2024 is expected to be second-half weighted, with challenges such as a pronounced seasonality in the first quarter and external pressures, such as changes in French reimbursement policies, affecting international sales. Nevertheless, management remains optimistic about growth in new OUS pump starts as these headwinds abate. The Mobi pump rollout in the U.S. is progressing well, with full integration with G7 expected in the second quarter of 2024 to help drive adoption. Biegelsen’s updated financial model reflects a slight increase in revenue estimates for 2024, but the maintenance of the price target at $21, coupled with the expectation of steady, rather than spectacular growth, underpins the rationale for the Hold rating.
TNDM’s price has also changed moderately for the past six months – from $27.790 to $22.550, which is a -18.86% drop .
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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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