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

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.

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Keith Lance

Investment Overview

I last covered Tandem Diabetes Care (NASDAQ: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

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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