Why Tandem Diabetes Care Stock Was Zooming Higher Today
Tandem Diabetes Care (NASDAQ: TNDM) was a standout stock as Tuesday's trading session barreled to a close. The insulin pump maker's stock price was nearly 10% higher in mid-afternoon trading, thanks largely to a recommendation upgrade from an analyst. That performance was well exceeding the 0.2% rise of the S&P 500 index at that point.
Stifel makes a recommendation upgrade
The upgrading party was Stifel's Mathew Blackman, who changed his Tandem recommendation from hold to buy after market close on Monday. In doing so, he set a price target of $37 per share, well up from his previous $24. The new target is 11% higher than the stock's current level.
In the analyst note detailing the change, Blackman zeroed in on the Mobi, which the specialty healthcare company describes as "The world's smallest, durable automated insulin delivery system."
The analyst's research indicates that the take-up for Mobi "is potentially occurring more-rapidly, to a greater magnitude-than-expected," with doctors, users, and diabetes patients who previously used competing products. This led Blackman to raise his estimates for Tandem's fundamentals from this year through 2026, resulting in the recommendation upgrade and the price target raise.
Good news and bad news in 2024 guidance
Tandem didn't necessarily finish its 2023 on a high note. Its fourth-quarter earnings, published toward the end of February, saw the company miss analyst estimates on both the top and bottom lines. Revenue guidance for the entirety of 2024, however, came in above the consensus estimates, and if met would mean nearly 14% growth over the previous year.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Tandem Diabetes Care Stock Was Zooming Higher Today was originally published by The Motley Fool
