Stifel reiterated its Buy rating on shares of Tandem Diabetes Care (NASDAQ:TNDM), with a consistent price target of $60.00. The firm's monthly Mobi survey, conducted in July, showed continued positive trends for the medical device company, mirroring the positive results from previous months.
The survey indicated sustained interest from both patients and physicians, a favorable mix of new users choosing Tandem's products, and rising expectations for the adoption of the company's technology.
The survey results suggest an accelerating adoption rate for Tandem's Mobi system. Physicians have been revising their patient start expectations upwards for 2024 and 2025 for the fourth consecutive month. The upward revisions, which began in June and continued through July, are seen as a sign of growing momentum for Mobi.
The increasing patient start expectations for 2024 are particularly noteworthy, as they may reflect not only the product's momentum but also a backlog for G7, a sensor integration that Tandem offers.
While the survey highlights strong growth prospects, it also presents a question about the sustainability of the current momentum, especially if it is driven primarily by the G7 sensor integration. The long-term growth trajectory will depend on whether Tandem can maintain the interest and adoption levels observed in recent months.
Tandem Diabetes Care's stock continues to be supported by positive data from Stifel's research, with the company's Mobi system showing signs of increased adoption and interest among the medical community.
The $60.00 price target remains in place as Tandem's prospects appear to be strengthening, based on the latest survey results.
InvestingPro Insights
As Tandem Diabetes Care (NASDAQ:TNDM) garners positive attention from Stifel's Buy rating and a robust $60.00 price target, InvestingPro data and tips provide additional context for investors considering the stock. The company's market cap stands at a solid $2.92 billion, indicating a notable presence in the medical device sector. However, with a negative P/E ratio of -20.26 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -19.79, Tandem's profitability challenges are highlighted. Despite these figures, the company has shown a remarkable 64.82% return over the past year, demonstrating significant investor confidence and market performance.
Among the InvestingPro Tips, two particularly stand out. Tandem's management has been actively buying back shares, a signal that could be interpreted as confidence in the company's future from those at the helm. On the flip side, 12 analysts have revised their earnings estimates downwards for the upcoming period, suggesting that while the company has had a strong past performance, there may be concerns about its immediate financial outlook. For investors seeking a deeper dive into Tandem's potential, InvestingPro offers a wealth of additional tips, with 9 more listed on the platform.
With Tandem's next earnings date set for October 30, 2024, investors will be keen to see whether the company can address profitability concerns while maintaining its growth momentum. The InvestingPro Fair Value estimate of $38.41 USD offers a more conservative perspective compared to the analyst target of $57 USD, underscoring the importance of thorough analysis in this dynamic market. For a comprehensive set of insights, investors can explore further on InvestingPro.
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