Piper ups Tandem Diabetes to OW; PT $13


Piper Jaffray upgraded Tandem Diabetes (NASDAQ:TNDM) to “overweight” from “neutral” and raised its price target to $13 from $8 after hosting meetings with the company’s CEO and CFO. The stock closed at $8.90 on April 11.

“After two days on the road, we came away with … a better understanding/appreciation for the upgrade cycle that is in front of the company,” writes analyst J.P. McKim.

“While some investors fear they have missed the rally in shares, and while we too missed the bottom, we believe this is just the beginning of share appreciation over the next several years (Goldilocks Period) for the company,” he added.

Mr. McKim said that during the next two years, Tandem should have the “strongest closed loop system on the market (with G6 and TypeZero), providing a reason for its install base to upgrade/renew and competitive pumpers to switch.”

He said this renewal cycle coupled with insulin pump maker Animas’ tailwind and international expansion “should provide upside to consensus sales over the next several years.”

Stephen Kilmer