Wells upgrades Tandem Diabetes on positive endocrinologist survey

Wells Fargo upgraded Tandem Diabetes to Overweight from Equal Weight with a price target of $45, up from $21. The firm is increasingly optimistic that Tandem’s share of new pump starts will least stabilize in 2024 after surveying 50 endocrinologists. The survey suggests Mobi is likely to cannibalize Tandem share but perhaps expand the overall market, the analyst tells investors in a research note. Wells says 50% of respondents expect Mobi starts will come from a mix of pump naive and existing pumpers. As such, it sees an opportunity for Mobi to potentially re-accelerate both Tandem and overall market growth. Wells sees a positive risk/reward in Tandem shares at current valuation levels. The company’s 2024 guidance of 10% growth seems achievable, if not conservative, contends the analyst.