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Why Wall Street Is Still Bullish on Tandem Stock

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Analysts’ recommendations

This month, of the total ten analysts covering Tandem Diabetes Care (TNDM), seven have given the stock a “buy” or higher rating and three have given it a “hold” rating. The mean rating for Tandem Diabetes Care stock is 2.1 with a price target of $52.8, implying an upside potential of 65% over the closing price of $32.0 on November 13.

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Peer ratings

Peers DexCom (DXCM), Insulet (PODD), and Johnson & Johnson (JNJ) have mean ratings of 1.84, 1.94, and 2.32, respectively, and price targets of $152.88, $105.53, and $146.78, respectively.

Tandem Diabetes Care’s enterprise value is $1.84 billion, and its enterprise value–to–revenue ratio is 12.42. Its price-to-sales ratio is 14.99, and its price-to-book ratio is 15.38. In comparison, peers DexCom, Insulet, and Johnson & Johnson stand at 22.48, 24.10, and 6.01, respectively.

Tandem’s current ratio, a metric of how effectively a company can meet its short-term obligations, stands at 2.80. DexCom, Insulet, and Johnson & Johnson stand at 4.70, 4.60, and 1.70, respectively.

Tandem’s cash per share stands at 1.88 while DexCom, Insulet, and Johnson & Johnson stand at 7.58, 4.70, and 7.22, respectively.

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