Wells Fargo Upgrades Tandem Diabetes Care (TNDM) to Overweight

Wells Fargo analyst Lawrence Biegelsen upgraded Tandem Diabetes Care (NASDAQ: TNDM) from Equal Weight to Overweight with a price target of $27.00 (from $21.00).

The analyst comments: “On 5/28, we hosted management as a part of our 2026 West Coast Bus Tour. While Q1 pharmacy was a bit disappointing, TNDM was live on PAYGO for only 1 month as it rebuilt formulary coverage from zero to ~40% in one qtr off-cycle (vs. 40-50% FY expectations). 70-80% coverage is targeted over the medium term. Early Q2 is encouraging. April volume exceeded March, and TNDM is confident that volumes can grow month-over-month.

TNDM’s 350K patient installed base is a key lever, as pumps are not commodities or fully interchangeable, and payers want access to TNDM's large patient base. Peers are negotiating rationally, not chasing lowprice leadership. Management frames ~$350/month ASP as a starting point, targeting closer to ~$450/month. Pressure could show up as price freezes, rather than declines, with TNDM's clinical data and scale helping defend pricing over time.

Competition is contemplated in the 10-11% US pump shipment (and YoY new start growth) guide. Sequel began shipping in late Q4 / early Q1 and competes on pharmacy and dispensing accuracy. Management views accuracy of dispensing as less differentiating. MMED Flex (2H26) is viewed as a stronger MMED product but likely benefits MMED's installed-base retention rather than driving switching, and PODD's expanded recall is not viewed as a share-shift event. TNDM reiterated Q2 US new starts to grow YoY.”

For an analyst ratings summary and ratings history on Tandem Diabetes Care click here. For more ratings news on Tandem Diabetes Care click here.

Shares of Tandem Diabetes Care closed at $17.20 yesterday.

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