Citigroup Downgrades Tandem Diabetes Care to 'Sell' with $14.00 Price Target

Tandem Diabetes Care (TNDM) has been downgraded by Citigroup from "Neutral" to "Sell" with a lower price target of $14.00, a 41.67% decrease. Analysts forecast an average target price of $35.29 with an upside of 112.31% from the current price. The estimated GF Value for TNDM is $46.69, suggesting a 180.93% upside.

Tandem Diabetes Care (NASDAQ:TNDM) experienced a significant drop in its stock price on Wednesday morning following a downgrade by Citi analyst Joanne Wuensch. The stock fell by 5% after being downgraded from "Neutral" to "Sell," with a new price target of $14, a 41.67% decrease from the previous target of $24 [1].

The analyst cited intensifying competitive pressures as the primary reason for the downgrade. Wuensch noted that while the 2Q25 delivery will be crucial, competition and the potential impact of competitive bidding are major concerns. She expressed skepticism about Tandem's ability to overcome these challenges in the near term, suggesting that the stock is likely to remain under pressure [1].

Tandem Diabetes Care operates in a market with several established competitors, including Medtronic and Abbott Laboratories. The company manufactures insulin delivery systems for people with diabetes, a sector that has seen increased competition and potential pricing pressures. The analyst's downgrade reflects these competitive pressures and the potential challenges Tandem faces in maintaining its market position [2].

Investors have been cautious about Tandem Diabetes Care's stock, which has been on a continuous losing streak. The stock has fallen by 55.3% since the beginning of the year and is currently trading at $16.01 per share, a significant decrease from its 52-week high of $47.30 [2].

Despite the recent downturn, some investors see the stock market's reaction as an overreaction to the news, indicating that the downgrade may not fundamentally change the market's perception of the business. The estimated GF Value for TNDM is $46.69, suggesting a potential 180.93% upside [2].

References:
[1] https://www.investing.com/news/stock-market-news/tandem-diabetes-stock-falls-after-citi-downgrades-to-sell-on-competition-concerns-93CH-4128112
[2] https://finance.yahoo.com/news/why-tandem-diabetes-tndm-shares-160101666.html