BofA/Merrill Lynch upgraded Neutral Tandem (NASDAQ: TNDM) from Neutral to Buy with a price target of $22.00 following Q2 results.

Analyst Bob Hopkins notes while the company did not beat expectations, shares are now at an all-time low and Q2 numbers
and comments on the conference call suggest the business is on track. The analyst highlights that EV is only $230mm, and the stock trades below its IPO price and is 60% below its recent high.

Hopkins notes the company is an emerging player in the attractive diabetes pump market and all of its pipeline products are hitting milestones. He also said, the company recent contract wins and rep hires provide confidence that back half and 2015 estimates can be hit.

The firm moved FY 2014 EPS from ($3.41) to ($3.50), FY 2015 EPS from ($2.69) to ($2.63) and FY 2016 EPS from ($1.78) to ($1.74).

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 $12.49 yesterday.