Citi Upgrades Tandem Diabetes Care to Neutral, Raises PT to $10.35

Citi Upgrades Tandem Diabetes Care to Neutral, Raises PT to $10.35

Citi has upgraded its rating for Tandem Diabetes Care (TNDM) to Neutral and raised its price target to $10.35. The upgrade comes after the company's strong Q2 2025 earnings report, which highlighted record sales and growth, particularly in the U.S. market. Tandem reported $170 million in U.S. sales, up 9% year-over-year, driven by increased pump shipments and expanding market access strategies [2].

The company's multichannel market access strategy, which includes plans to launch pharmacy channel sales for t:slim supplies in Q4, is expected to diversify its revenue streams and contribute significantly to its financial growth. International sales also performed well, reaching $70 million in Q2, with the company preparing for direct sales in select countries next year to strengthen its global market presence [2].

Citi's upgrade reflects the company's strong product pipeline, which includes the Mobi platform upgrades and the Steadiset's extended wear 510(k) submission. These innovations are expected to enhance product versatility, particularly beneficial for type 2 diabetes users with greater insulin needs [2].

However, Citi also noted the potential risks associated with the company's expansion into the pharmacy channel and the impact of CMS proposals on its business. The company's ability to navigate these challenges will be crucial in determining its long-term success.

References:
[1] https://www.ainvest.com/news/tandem-diabetes-care-pioneering-future-diabetes-management-high-conviction-growth-play-2025-2508/
[2] https://www.ainvest.com/news/tandem-diabetes-care-2025-q2-earnings-call-unpacking-contradictions-cms-proposals-pharmacy-strategies-renewal-growth-2508/