In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on Tandem Diabetes (NASDAQ: TNDM), with a price target of $24. The company’s shares closed on Friday at $19.91, close to its 52-week high of $20.07.
Lichtman noted:
“Despite TNDM’s very strong performance year-to-date, the stock still trades at a discount to high-growth medtech peers. We ran a screen of medical device companies with sales growth of >20% in 2017. The peer group of 21 stocks trades at 6.8x 2019 EV/sales versus 5.5x for TNDM. Balancing a faster sales growth outlook for TNDM with lower trailing gross margin versus peers, we believe a multiple more in-line with peers is appropriate, particularly as we enter a period of catalysts including launch of BASAL IQ (2H18E) and launches outside of the US (2H18E). As we’ve written before, we believe our initial international estimates are conservative. Our raised target price of $24 (from $15) implies 6.6x 2019E EV/sales.”
According to TipRanks.com, Lichtman ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -2.7% and a 53.7% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Motus Gi Holdings Inc, Integra Lifesciences, and Wright Medical Group.
Tandem Diabetes has an analyst consensus of Strong Buy, with a price target consensus of $12.67.
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Based on Tandem Diabetes’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $32.69 million. In comparison, last year the company had a GAAP net loss of $23.79 million.
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Tandem Diabetes Care, Inc. engages in the design, development, and commercialization of products for people with insulin-dependent diabetes. Its flagship product, t:slim X2 Insulin Delivery System, operates as a small insulin pump. The company was founded by Paul M. DiPerna on January 27, 2006 and is headquartered in San Diego, CA.
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