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Investing.com - Canaccord Genuity reduced its price target on DexCom (NASDAQ:DXCM) to $99 from $106 while maintaining a Buy rating following the company’s third-quarter earnings report. According to InvestingPro analysis, DexCom currently appears undervalued based on multiple financial metrics, suggesting potential upside despite the recent price target cut.
DexCom delivered a strong revenue beat in the third quarter of 2025, but missed expectations on gross margins and operating margins. Despite these misses, operating profits aligned with forecasts due to the revenue outperformance.
The company raised its full-year 2025 revenue guidance to reflect the third-quarter results while keeping fourth-quarter projections unchanged. DexCom simultaneously lowered its gross margin and adjusted EBITDA guidance as ongoing quality-related costs continue to impact profitability. For investors seeking deeper insights, InvestingPro offers a comprehensive Pro Research Report with detailed margin analysis and growth projections for DexCom, one of 1,400+ US equities covered with expert analysis.
Canaccord highlighted two positive developments from DexCom’s earnings call: new patient starts approaching record levels and attrition rates remaining stable. The firm suggested these factors could position 2026 as "a solid year for investors willing to hold their nose and take the plunge."
The revised $99 price target represents a 25% discount to Canaccord’s Elite Med-Tech comparison group, reflecting continued near-term challenges despite the maintained Buy rating.
In other recent news, DexCom Inc. reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.61, exceeding the forecasted $0.57, resulting in a 7.02% earnings surprise. Revenue also outperformed predictions, reaching $1.21 billion compared to the anticipated $1.18 billion, marking a 2.54% surprise. These results highlight DexCom’s strong financial performance in the recent quarter. Despite these positive earnings and revenue figures, the company’s stock showed minimal movement. Analysts had projected these figures, which DexCom managed to exceed. These developments are part of the recent financial activities surrounding the company.
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