Bullish Call On Tandem Diabetes Signals Long-Term Growth Confidence

Tandem Diabetes Care Inc. (NASDAQ:TNDM) stock is trading higher on Tuesday following an analyst upgrade, citing a long-term upside opportunity. • Tandem Diabetes Care stock is among today’s top performers. Why is TNDM stock up today? Analyst Matt O'Brien upgraded from Neutral to Overweight, citing stronger long-term revenue potential driven by its shift to the pharmacy channel, international growth opportunities and upcoming product catalysts. Pharmacy Channel Shift Seen Driving Revenue Upside O'Brien estimates approximately $15 million in incremental pharmacy-related revenue upside in 2026, followed by an additional $33 million the next year. While the evolving pharmacy contract structure introduces some complexity, much of the pricing improvement is expected to flow through to gross profit. International Growth and Margins Support Bullish View For Tandem Diabetes Piper Sandler sees additional upside from international markets, projecting roughly $11 million and $15 million in incremental revenue over the next two years. These combined tailwinds support management's gross margin outlook, including a projected 270 basis point expansion at the midpoint and a long-term target of 65%. Piper believes these targets are achievable, with potential for further upside, reinforcing a positive long-term profitability trajectory. Analyst raised the price forecast from $21 to $33. Tandem Diabetes Mobi Tubeless Launch Could Boost Market Share The upcoming approval and commercialization of Tandem's Mobi tubeless insulin delivery system is viewed as another key catalyst. Piper Sandler expects the product to support pump shipment growth in the coming years and help the company regain market share. The analyst also noted Tandem's recent strategic initiatives, aimed at refining its go-to-market approach both in the U.S. and internationally, were encouraging following its latest earnings call. Near-Term Shipment Guidance Raises Questions Despite the optimistic outlook, Piper Sandler flagged concerns around the infusion pump maker's guidance for U.S. pump shipment growth, which is projected to increase 10% this year. This marks a notable acceleration compared to prior years and has drawn skepticism from investors. Additionally, faster-than-expected patient conversion to the pharmacy channel could dampen some revenue upside in 2026. However, the firm believes the broader growth drivers should outweigh these risks, supporting a more constructive view on the stock. TNDM Stock Price Activity: Tandem Diabetes Care shares were up 8.49% at $23.77 at the time of publication on Tuesday, according to Benzinga Pro data. Photo via Shutterstock