Tandem Diabetes price target lowered to $32 from $33 at Baird

Baird analyst Jeff Johnson lowered the firm’s price target on Tandem Diabetes to $32 from $33 and keeps a Neutral rating on the shares after surveying 25 endocrinologists regarding GLP-1 use in type two diabetes. GLP-1 use is expected to grow from 46% to 70% of current type two diabetes patients in the next few years, the analyst tells investors in a research note. More importantly, the endocrinologists believe GLP-1 use could halt the progression to basal/bolus insulin use for nearly 50% of the patients for the next 5-10 years and that the overall size of the U.S. intensive insulin therapy type two population could shrink 11% over the next decade. Baird believes a “sentiment overhang” will likely persist for Tandem for the foreseeable future.