UPDATE: Bank of America Initiates Coverage on Tandem Diabetes Care on Potential Product Success

In a report published Monday, Bank of America analyst Bob Hopkins initiated coverage on

with a Neutral rating and $27.00 price target. In the report, Bank of America noted, “We are initiating coverage on TNDM, maker of the first truly consumer friendly durable insulin pump, with a Neutral rating and a $27 PO. TNDM is poised to take meaningful share of this $1.2 bn U.S. market in our view, but the stock has appreciated almost 70% since its recent IPO and now trades at an EV/sales multiple of 10.3x our 2014 # and 6.3x our 2015 estimate. Our $27 PO assumes TNDM trades at about 6.9x 2015 EV/sales, a premium to patch pump player PODD and a discount to DXCM. Our Neutral rating is due entirely to TNDM's recent run up and the early stage of its commercial development.” Tandem Diabetes Care closed on Friday at $24.79.