Jun. 1 at 8:46 PM
Shares of Tandem Diabetes Care surged after Wells Fargo upgraded the stock to Overweight from Equal Weight and raised its price target to
$27 from
$21, citing the company's rapidly expanding presence in the pharmacy channel as an underappreciated long-term growth opportunity.
The upgrade followed meetings with management during Wells Fargo's West Coast Bus Tour, where executives highlighted progress in rebuilding formulary coverage from virtually zero to about 40% in the first quarter, with a medium-term goal of 70%–80% coverage. Analysts believe this strategy could support a transition toward a more recurring revenue model and stronger long-term economics.
The positive outlook comes as Tandem reported record first-quarter performance, shipping more than 29,000 insulin pumps worldwide, generating
$247.2 million in revenue, and achieving a 55% gross margin, up 480 basis points year over year. While broader markets posted modest gains.
$TNDM