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Tandem Earnings: Launch of Mobi and CGM Integrations Bodes Well for 2024
No-moat Tandem Diabetes kicked off a strong start to 2024 thanks to its US launch of Mobi. After adjusting our projections for the full year to reflect this strength that we think can extend into 2025, we've raised our fair value estimate by $2 to $34 per share. Our revisions put our estimates just beyond the top end of management's outlook. Though we think Tandem's splashy return to growth can be maintained through this year, we remain cautious about giving the firm a moat, as we don't anticipate economic profits until closer to 2028. Nonetheless, we see potential for a moat based on Tandem's intangible assets, which include the collection of proprietary data and algorithms.