Market Overview

Piper Jaffray: Tandem Diabetes Is Entering A 'Goldilocks Period'

Share:
Piper Jaffray: Tandem Diabetes Is Entering A 'Goldilocks Period'
Related
33 Stocks Moving In Wednesday's Pre-Market Session
The Daily Biotech Pulse: AbbVie's Leukemia Drug Trial Meets Endpoint, Denali Strikes Collaboration Deal

Tandem Diabetes Care Inc (NASDAQ: TNDM) broke 12-month highs Monday after yet another analyst delivered a bullish outlook.

The Rating

Piper Jaffray analyst JP McKim upgraded Tandem from Neutral to Overweight and raised the price target from $8 to $13.

The Thesis

Tandem has fallen 99 percent off its 2014 all-time high, but McKim said in a Monday note that the medical device manufacturer is entering a “Goldilocks Period” of several years with a "superior" closed loop system. 

“While we missed the bottom, we believe this is just the beginning of share appreciation,” the analyst said. 

Given the FDA's mission to spur innovation and rival Medtronic PLC (NYSE: MDT)’s two-to-three-year delay in 690G, Tandem’s Basal IQ could be approved with DexCom, Inc. (NASDAQ: DXCM)’s G6 in late June, McKim said. Competing products aren’t expected for nearly two years.

“With an iCGM partner in DXCM, TNDM should always have access to the latest and greatest technology keeping them one step (or two or three steps) ahead of MDT." 

At the same time, against previous understanding, Tandem has the opportunity to sell new hardware to more than half of its install base, which has technology that's incompatible with the latest software, McKim said. 

“While we underestimated the renewal opportunity before, we now believe it is real and a meaningful driver of growth going forward." 

Price Action

Tandem Diabetes shares were soaring 20.9 percent to $10.76 at the time of publication Monday afternoon. 

Related Links:

Report: Apple Wants To Create A Better Way To Treat Diabetes

4 Tailwinds Driving Raymond James' Insulet Bull Case

Photo courtesy of Tandem Diabetes Care. 

Latest Ratings for TNDM

DateFirmActionFromTo
Sep 2018Craig-HallumInitiates Coverage OnBuy
Sep 2018BairdDowngradesOutperformNeutral
Aug 2018BerenbergInitiates Coverage OnBuy

View More Analyst Ratings for TNDM
View the Latest Analyst Ratings

Posted-In: JP McKim Piper JaffrayAnalyst Color Upgrades Health Care Price Target Analyst Ratings General Best of Benzinga

 

Related Articles (DXCM + MDT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ACBIKeefe Bruyette & WoodsUpgrades21.0
COTYBMO CapitalUpgrades12.0
ECCOppenheimerDowngrades0.0
VYGRRaymond JamesUpgrades0.0
ATNXJP MorganUpgrades15.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Reactions To Tim Cook's Duke Commencement Speech

BofA Upgrades Meritage Homes In Bullish Turn On Homebuilders, Downgrades 3 Building Products Names