BofA maintains Buy on DexCom stock with $90 target

On Monday, BofA Securities maintained a Buy rating on DexCom (NASDAQ:DXCM) shares, with a steady price target of $90.00. The firm’s analysts suggest the current market movement presents an appealing opportunity for investors to purchase shares, emphasizing that the day’s fluctuation is unlikely to affect the company’s full-year financial projections. According to InvestingPro data, DexCom’s stock has shown strong momentum with a 26% return over the past six months, despite trading at a P/E ratio of 50. The company’s current market capitalization stands at approximately $34 billion.

The analysts at BofA Securities expressed confidence in DexCom’s prospects, particularly regarding the anticipated approval of their 15-day product, which they believe could occur in the near term. Their stance remains unchanged as the company approaches its fourth-quarter earnings report, scheduled for Thursday. BofA Securities anticipates that DexCom will provide positive updates on the launch of the 15-day product, expected in the second half of 2025. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 2.46 and operates with moderate debt levels. Get access to 16+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In preparation for the upcoming earnings announcement, BofA Securities has already factored in potential risks to their 2025 guidance for DexCom. They predict that the financial results will not contain any unforeseen developments, particularly concerning the progress and expectations for the year 2025. The company has demonstrated solid performance with a revenue growth of 16% in the last twelve months and maintains healthy profit margins of around 62%.

The analysts’ comments come ahead of DexCom’s earnings release, where the company is likely to discuss its performance and outlook. They highlighted, "We maintain our Buy rating. As we head into Q4 earnings on Thursday, we think DXCM will continue to sound good on 15-day being launched in 2H25, and we already have de-risked the 2025 guide. We don’t expect there to be any surprises either with the cadence of 2025."

DexCom, known for its continuous glucose monitoring systems, has been a company of interest for investors tracking developments in medical technology and devices. With the reaffirmed Buy rating and price target from BofA Securities, the market will be watching closely for the company’s performance updates and potential product approvals that could influence its stock trajectory.

In other recent news, DexCom has been the subject of various analyst recommendations. Redburn-Atlantic analyst Issie Kirby (NYSE:KEX) upgraded DexCom’s stock from Neutral to Buy, increasing the price target to $115. Kirby emphasized DexCom’s promising position in the continuous glucose monitoring market and potential for expansion into the Type 2 non-insulin segment. Meanwhile, Raymond (NSE:RYMD) James maintained a Strong Buy rating on DexCom with a $99 target, indicating the firm’s belief in the company’s sustainable mid-teens revenue growth and potential operating leverage.

Piper Sandler also reaffirmed its Overweight rating on DexCom stock, citing growth potential and upcoming product releases, such as a 15-day wear glucose monitor and the G8 system. Citi continued its support with a Buy rating, highlighting DexCom’s key growth drivers, including the anticipated launch of the 15-day G7 and the expansion of Stelo’s distribution.

These recent developments reflect a positive outlook on DexCom’s financial performance and market position. DexCom’s advancements in technology and market strategy are aligning well with growth opportunities in the continuous glucose monitoring sector. The company also announced robust 2025 revenue forecasts, further demonstrating the confidence in its strategic direction and operational targets.

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