Bernstein downgrades Tandem Diabetes on market share loss concerns

Investing.com -- Bernstein downgraded Tandem Diabetes Care (NASDAQ: TNDM) to Market-Perform from Outperform, citing market share losses and rising competition in the insulin pump space.

The firm also lowered its price target to $25 from $35.

Tandem's stock plunged 35% following its fourth-quarter earnings report, which showed weaker-than-expected margins and signs of market share erosion in U.S. type 1 diabetes pump starts.
Bernstein highlighted increased competitive pressure, particularly from Beta Bionics, as well as potential disruptions from the company’s sales realignment and distributor transition.

The firm cut its long-term revenue estimates, now projecting a 6.5% lower figure for 2027, pushing its EPS estimate into negative territory.

Bernstein reduced its price-to-sales multiple assumption to 1.5x, reflecting concerns over the company’s growth trajectory.

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