Tandem Diabetes Care (TNDM): Assessing Valuation After Lyumjev Compatibility Expands Insulin Pump Options

Tandem Diabetes Care (TNDM) just announced that its t:slim X2 insulin pump with Control-IQ+ technology is now cleared in the U.S. for use with Lyumjev, Eli Lilly’s ultra-rapid acting insulin. This update broadens options for people living with diabetes and reflects ongoing product innovation.

See our latest analysis for Tandem Diabetes Care.

Tandem Diabetes Care’s recent FDA clearance for Lyumjev compatibility highlights its push for innovation, yet the stock has not translated fresh product news into strong gains. Over the past year, the total shareholder return is down about 62 percent, suggesting investor optimism is still muted. Momentum has been fairly subdued in recent months even as broader industry activity remains robust.

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With shares trading well below analyst price targets and after years of underperformance, does Tandem Diabetes Care now offer investors an attractive entry point? Or is the market already factoring in all upcoming growth?

Most Popular Narrative: 27.7% Undervalued

With Tandem Diabetes Care trading at $15.01 and a narrative fair value near $20.76, the gap has sparked strong debate among market-watchers regarding the company's future trajectory. A closer look reveals that optimism centers around major expansion moves and adjacent growth opportunities.

Broader pharmacy channel expansion and acceleration of pharmacy-based supply sales are expected to lower out-of-pocket costs, increase pump adoption rates, and shift more high-margin recurring supply sales through premium-priced channels. This is seen as supporting future revenue growth, margin expansion, and improved earnings.

Read the complete narrative.

Curious about the big financial leaps behind this bullish view? The narrative banks on operational moves that could change everything for growth, margins, and future profits. The key quantitative assumptions, including projected jumps in recurring revenue and a bold shift to higher pricing power, might surprise you. Want to know what supports that higher price target? Dive in to see what numbers and forecasts the consensus is betting on.

Result: Fair Value of $20.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, growing U.S. competition and delays in executing commercial changes could quickly put Tandem’s projected growth and margin improvements at risk.

Find out about the key risks to this Tandem Diabetes Care narrative.

Build Your Own Tandem Diabetes Care Narrative

If you’re looking to form your own perspective or challenge the prevailing view, you can pull up the data and assemble your own take in just minutes. Do it your way

A great starting point for your Tandem Diabetes Care research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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