TNDM - Tandem Diabetes Care: Recent Rally Fully Deserved Likely More Upside Here

2024-05-29 07:04:40 ET

Summary

• Tandem Diabetes Care is a company that specializes in diabetes management products, most notably insulin pumps for T1D patients.
• TNDM stock has been performing well, with a 100% increase in value over the past year.
• Shares traded at >$150 per share in 2021, before a torrid bear run dragged it to <$15.
• Fears that the company could not compete with market rivals or new market entrants were overblown, and the company has recovered admirably from multiple setbacks.
• Management hopes to reach 1m customers and drive a 25% operating margin - that is a long way off, but the recent bull run can continue on improving performance and industry dynamics.

Investment Overview

I last covered Tandem Diabetes Care ( TNDM ) in a note for Seeking Alpha back in November 2020, when the automated insulin pump solutions provider's stock price traded at ~$115. I gave the stock a "Buy" recommendation, which initially proved to be the right call, as 12 months on, it had reached a high of $150 per share....

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