Medical device maker Tandem Diabetes Care Inc (NASDAQ: TNDM) has high growth potential, but its upside could be limited by valuation, according to Bank of America Merrill Lynch.
Tandem Diabetes' balance sheet is no longer a major concern, and there are "multiple levers to drive 20-30-percent growth for several years," Steed said in a Friday note. (See the analyst's track record here.)
The company has a superior product in its insulin pump, with renewals contributing to upside, the analyst said.
Steed sees an incremental opportunity in the company's expansion into international markets.
When the company's Control-IQ products become commercially available in 2019, the analyst said Tandem may even have an opportunity to disrupt Medtronic PLC (NYSE: MDT)'s exclusive deal with UnitedHealth Group Inc (NYSE: UNH).
Yet BofA noted that the shares are already trading at 11 times its 2019 revenue estimate, keeping the firm on the sidelines.
BofA forecast 2018 sales of $146 million and 42-percent year-over-year growth, with the potential for $15 million in upside.
The Price Action
Tandem Diabetes shares have appreciated over 1,500 percent year-to-date.
The stock was losing 1.53 percent to $38.02 at the time of publication late in Friday's session.
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Photo courtesy of Tandem Diabetes Care.
Latest Ratings for TNDM
|Aug 2018||Dougherty||Initiates Coverage On||Buy|
|Aug 2018||Bank of America||Upgrades||Underperform||Neutral|
|Jul 2018||Stifel Nicolaus||Maintains||Hold||Hold|
View More Analyst Ratings for TNDM
View the Latest Analyst Ratings
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