DexCom stock initiated with Buy rating at Truist on diabetes monitoring growth

Truist Securities initiated coverage on DexCom (NASDAQ:DXCM) with a Buy rating and a $102.00 price target Monday, citing the company’s position in the continuous glucose monitoring market. According to InvestingPro data, the stock currently trades at $81.99, with analysts setting targets between $82 and $110.

The research firm highlighted DexCom as a leading innovator in the rapidly growing continuous glucose monitoring space, with significant opportunities to drive higher adoption in large and underpenetrated worldwide diabetes markets for both type 1 and type 2 patients. The company’s strong market position is reflected in its impressive 59.4% gross profit margin and 22% five-year revenue CAGR.

Truist noted that mid-2024 execution challenges should now be behind the company, positioning DexCom for improved performance through the remainder of 2025 and beyond.

Revenue catalysts expected to drive growth include expanding type 2 non-insulin-treated reimbursement and automated insulin delivery system integrations, according to the research firm’s analysis.

Truist also identified margin improvement opportunities from DexCom’s 15-day wear technology, expressing confidence the company can sustain revenue growth above 15% and earnings-per-share growth exceeding 25% through 2028.

In other recent news, DexCom has been the subject of several analyst evaluations and price target adjustments. Canaccord Genuity raised its price target for DexCom to $106 following the company’s strong first-quarter performance in the U.S., although international sales slightly missed expectations. They maintained a Buy rating, highlighting DexCom’s robust growth and potential in the Type 2 non-insulin market. Meanwhile, Piper Sandler reiterated its Overweight rating and $100 price target, citing rapid growth in continuous glucose monitoring adoption and a favorable financial outlook for DexCom. RBC Capital Markets also upheld an Outperform rating with a $100 target, emphasizing the company’s growth potential and expanding U.S. Pharmacy Benefit Manager coverage.

Goldman Sachs initiated coverage of DexCom with a Buy rating and set a $104 price target, noting the company’s innovative technology and untapped potential in consumer adoption. The firm expressed confidence in DexCom’s financial trajectory, anticipating strong profit and loss leverage through 2025. Conversely, Bernstein adjusted its price target downward to $88 from $100, while maintaining an Outperform rating. The revision was based on a reduced price-to-sales multiple, reflecting risks such as competition and supply chain challenges. Despite this, Bernstein remains optimistic about DexCom’s growth catalysts and potential for market outperformance.

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