Wells Fargo Upgrades Tandem Diabetes Care (TNDM) to Overweight
Wells Fargo analyst Lawrence Biegelsen upgraded Tandem Diabetes Care (NASDAQ: TNDM) from Equal Weight to Overweight with a price target of $27.00 (from $21.00).
The analyst comments: “On 5/28, we hosted management as a part of our 2026 West Coast Bus Tour. While Q1 pharmacy was a bit disappointing, TNDM was live on PAYGO for only 1 month as it rebuilt formulary coverage from zero to ~40% in one qtr off-cycle (vs. 40-50% FY expectations). 70-80% coverage is targeted over the medium term. Early Q2 is encouraging. April volume exceeded March, and TNDM is confident that volumes can grow month-over-month.
TNDM’s 350K patient installed base is a key lever, as pumps are not commodities or fully interchangeable, and payers want access to TNDM's large patient base. Peers are negotiating rationally, not chasing lowprice leadership. Management frames ~$350/month ASP as a starting point, targeting closer to ~$450/month. Pressure could show up as price freezes, rather than declines, with TNDM's clinical data and scale helping defend pricing over time.
Competition is contemplated in the 10-11% US pump shipment (and YoY new start growth) guide. Sequel began shipping in late Q4 / early Q1 and competes on pharmacy and dispensing accuracy. Management views accuracy of dispensing as less differentiating. MMED Flex (2H26) is viewed as a stronger MMED product but likely benefits MMED's installed-base retention rather than driving switching, and PODD's expanded recall is not viewed as a share-shift event. TNDM reiterated Q2 US new starts to grow YoY.”
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Shares of Tandem Diabetes Care closed at $17.20 yesterday.