Investing.com -- Citi analysts have taken action on two U.S. MedTech names, upgrading Haemonetics (NYSE: HAE ) to Buy from Neutral, while downgrading Tandem Diabetes Care (NASDAQ: TNDM ) to Sell/High Risk from Neutral/High Risk, citing diverging prospects in the second half of 2025.

On Haemonetics, Citi sees a more derisked outlook following the company’s fiscal 2026 guidance.

“With HAE FY26 guidance clearing the hurdle, the path forward is more derisked as Plasma share gains are baked into contracts,” analysts wrote.

Citi now expects high single-digit core revenue growth (ex-CSL) and margin expansion to deliver high-teens EPS growth, raising its price target to $90 from $71.

In contrast, Tandem is said to face mounting headwinds. “While the 2Q25 delivery will be imperative, commentary on competition and the impact of potential competitive bidding will be top of mind,” Citi noted.

The firm believes these factors will keep the stock under pressure and downgraded TNDM to Sell, slashing its price target from $24 to $14.

Citi’s broader outlook on the MedTech sector remains constructive. While tariff-related uncertainty continues to cloud guidance, analysts are embracing a “return to fundamentals with several catalysts providing momentum in 2H25+.”

Notably, the bank continues to favor BSX and EW as Top Picks and initiated a positive catalyst watch on GE Healthcare and Intuitive Surgical (NASDAQ: ISRG ).

Despite macro volatility, Citi said the sector is outperforming its healthcare peers, noting the S&P Equipment & Supplies Index is up 7.2% year-to-date versus Biotechnology at 5.7% and Pharmaceuticals down 3.7%.