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On Monday, Tandem Diabetes Care, Inc. (NASDAQ:) received an upgrade from Stifel, shifting the stock’s rating from Hold to Buy. The firm also increased its price target for the company’s shares from $24 to $37. This decision comes after a thorough second-round review of the company’s Mobi product since its full market launch.
The analyst at Stifel indicated that the revised outlook is based on a new, positive trajectory for new patient growth. This follows a survey of 48 participants, which suggests that the adoption of Tandem’s Mobi pump is progressing more rapidly and extensively than anticipated. The product is reportedly gaining favor with not only existing Tandem users but also with physicians and users of other insulin delivery methods.
The updated price target reflects raised expectations for the company’s performance from 2024 through 2026. The analyst emphasized that the upgrade is not merely a reaction to first-quarter results but is based on the potential for Tandem to surpass modest new patient growth expectations over the coming years.
While the analyst expressed confidence in the new rating, they also noted that the durability of this positive outlook will require further supportive feedback. However, given the current low valuation and market sentiment towards Tandem Diabetes Care, Stifel recommends the company’s shares as a comfortable investment choice at this time.
This strategic shift in rating and target price suggests that Tandem Diabetes Care may be positioned to outperform in the market, assuming the company continues to capitalize on the promising start of its Mobi insulin pump.
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