Tandem Diabetes Care (NASDAQ:TNDM) saw its stock decline by 5% Wednesday morning after Citi downgraded the company from Neutral to Sell, citing increasing challenges from competitors.
Analyst Joanne Wuensch cut her price target sharply, lowering it from $24 to $14, suggesting a downside of about 16% compared to Tuesday’s closing price of $16.62. The downgrade sparked early selling as investors weighed concerns over Tandem’s future growth potential.
Wuensch emphasized the importance of the company’s upcoming second-quarter 2025 delivery results but highlighted that competitive pressures and the risk of aggressive bidding in the market will dominate investor focus.
“Competition remains fierce, and the possibility of competitive bidding adds another layer of pressure,” Wuensch wrote in a client note. She expressed doubts about Tandem’s near-term ability to navigate these headwinds, warning that the stock will likely remain under strain.
Tandem Diabetes Care develops insulin delivery devices for diabetic patients, operating in a crowded sector with multiple established players. The company now faces not only rivalry from other manufacturers but also potential pricing pressures stemming from competitive bidding practices in the medical device industry.
Tandem Diabetes Care stock price
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