Pgiam/iStock via Getty Images
- Following a four-day skid, Tandem Diabetes Care (TNDM +6.9%) is trading higher after Wells Fargo upgraded the insulin pump maker to Overweight from Equal Weight, citing several reasons for the company to post better than expected financials over the next few years.
- “We see upside potential to our outside the US sales in 2022,” the analysts led by Larry Biegelsen wrote, noting that 2022 will be the first full year Tandem’s (NASDAQ:TNDM) Control IQ technology will be available in France and Germany.
- In addition to a strong renewal cycle starting this year, the team also attributes the sales upside to the potential delays to the rival devices from Medtronic (NYSE:MDT) and Insulet (NASDAQ:PODD) for their 780G and Omnipod 5 insulin pumps, respectively. The price target raised to $160 from $137 per share indicates a premium of ~37.7% to the last close.
- Read: In December, Wells Fargo downgraded Medtronic (MDT) after an FDA warning letter dealt a blow to the company’s diabetes business.