Piper Jaffray Resumes Neutral Tandem (TNDM) at Overweight

Piper Jaffray resumes coverage on Neutral Tandem (NASDAQ: TNDM) with a Overweight rating and a price target of $12.00.

Analyst Brooks West commented, "We believe shares of TNDM represent a risk-adjusted opportunity to own a rapidly growing share-taker with differentiated technology in the insulin pump market. We believe TNDM’s current multiple reflects investor concerns around the potential need to raise capital (which we believe is not the case), concerns over competitive product launches impacting the sustainability of its growth (MDT’s 670G is in focus), the eventual shift towards smartphone-driven pump control (something we believe TNDM is well positioned for though FDA remains years away) and, to a lesser extent, heavy (~38%) VC ownership and pronounced seasonality. In weighing these factors against the current stock price and our view of consensus profitability estimates being fundamentally incorrect, we believe investors in TNDM at its current ~$9 share price are well insulated from further downside risk and are positioned to realize substantial upside when cash burn and competitive headwinds can be put to rest."

For an analyst ratings summary and ratings history on Neutral Tandem click here. For more ratings news on Neutral Tandem click here.

Shares of Neutral Tandem closed at $9.56 yesterday.

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