Tandem Diabetes: Moving in the right direction but share needs to stabilize; Initiate at Hold

Research evidence excerpt

Tandem Diabetes: Moving in the right direction but share needs to stabilize; Initiate at Hold

Deutsche Bank

Research

Rating Company Date

Hold Tandem Diabetes 23 June 2026

Initiation of Coverage

North America

United States

Reuters Bloomberg Exchange Ticker Price at 22 Jun 2026 (USD) 14.34

TNDM.OQ TNDM US NMS TNDM

Price Target 15.50

Health Care

52-week range 28.26 - 10.12

Medical Supplies & Devices

Moving in the right direction but share

Valuation & Risks needs to stabilize; Initiate at Hold

Kieran Ryan

Portfolio Manager Summary Research Associate

n We initiate on TNDM shares with a Hold rating and $15.5 target price +1-212-250-6879

reflecting a ~8.2x 2027 EV/EBITDA target multiple.

Pito Chickering

n After a very challenging period post-Omnipod 5 launch, TNDM has done a Research Analyst

good job stabilizing the business in recent years with the launch of its +1-917-635-9954

smaller Mobi pump, better pricing from direct mix, and an improving

Imron Zafar

margin profile as it works toward consistent, expanding profitability.

Research Analyst

n The ongoing transition to paygo pharmacy is a transformational shift to the +1-212-250-3676

company’s economic model and should continue to benefit these

Ben Shaver

dynamics as it should improve access and friction with US customers while

Research Associate

driving revenue per paygo pharmacy patient to ~double the levels of its

+1-212-250-9926

legacy DME business.

n We are positive on this idiosyncratic lever to drive earnings growth and

improved stability from quarter to quarter which has been an issue at times

over the years due to how reimbursement works in DME. However the shift

is not without execution risk as there are many moving parts in converting

patients over, while pump shipments will transition from a key revenue