TNDM - Why did Tandem Diabetes Care stock go down today?

2023-03-29 16:31:59 ET

Shares of Tandem Diabetes Care ( NASDAQ: TNDM ) dropped for the third straight session on Wednesday after UBS downgraded rival insulin pump maker Medtronic ( NYSE: MDT ) and preferred Abbott Laboratories ( ABT ) in the diabetes market.

Downgrading MDT to Sell from Buy, the analyst Danielle Antalffy projected 2% below consensus sales and 3%/8% below consensus EPS for the company in FY24 and FY25, issuing a $79 target on the stock.

Medtronic ( MDT ), Tandem ( TNDM ), and Insulet ( PODD ) operate in the market for insulin delivery systems for diabetes which UBS thinks will grow at mid-teens, implying one of the fastest subsector growth rates for in its coverage.

Citing a survey results, Antalffy projects double-digit growth in the pump market, and expects new product launches to drive market share shifts. She prefers Neutral-rated Insulet ( PODD ) and Tandem ( TNDM ) over Sell-rated Medtronic ( MDT ).

However, in the diabetes market, the analyst picked the makers of continuous glucose monitoring systems (CGMs) DexCom ( DXCM ) and Abbott Laboratories ( ABT ) with Buy ratings, ahead of Insulet ( PODD ) and Tandem ( TNDM ).

The analyst projects continued double-digit growth for CGM devices and expects DXCM to gain market share.

In a recent industry report, Allied Market Research estimated CGM market to reach $31.7B by 2031.

For further details see: