Tandem, Insulet draw bullish views at Bernstein ahead of earnings

Bernstein launched the coverage of insulin pump makers Tandem Diabetes Care (NASDAQ:TNDM) and Insulet Corporation (NASDAQ:PODD) with outperform recommendations just as the duo prepares to release their Q3 2024 financials this week.

With a $42 per share target on Tandem (NASDAQ:TNDM), analyst Lee Hambright pointed to a consumer survey that suggested that a growing share of patients value the ability to detach their insulin pumps during events such as sports activities. “TNDM offers a growing portfolio of strong options for these users,” Hambright wrote.

While the company has lost more than 25% of its value since September as investor expectations on its recently launched Mobi insulin patch pump soured, the analyst sees future upside as the company executes on the Mobi launch and works on the interoperability with Abbott’s (ABT) glucose monitoring system, Libre 3 Plus.

Commenting on Insulet (NASDAQ:PODD) Hambright issued a $300 target, noting that the company has a strong competitive advantage in the market for tubeless patch pumps, “which consistently wins the lion’s share of new pump starts and continues to accumulate user share for PODD.”

The analyst sees further upside to the stock as the company progresses in expanding margins and capturing opportunities in the type 2 diabetes market.

Tandem is expected to report its Q3 results in the aftermarket on Wednesday, while Insulet’s (PODD) Q3 results are scheduled for Thursday post-market.