Tandem Diabetes downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Tandem Diabetes (TNDM) to Market Perform from Outperform with a price target of $25, down from $35. The firm notes Tandem reported Q4 results Wednesday after market close, and on Thursday the stock dropped 35% to close at $21.75. Bernstein sees four key factors that motivate it to change its view, namely Tandem appeared to lose share of U.S. type 1 new pump starts in Q4, new entrants are intensifying competition for the number 2 spot in the insulin pump market, Tandem announced a U.S. sales expansion/realignment and outside-U.S. distributor transition which could complicate 2025, and margins came in below expectations in Q4, which could stoke anxieties about the company’s path to positive EPS.