DexCom stock price target maintained at $100 by TD Cowen on G7 issues resolution

Investing.com - TD Cowen reiterated its Buy rating and $100.00 price target on DexCom (NASDAQ:DXCM) on Thursday, citing resolution of earlier issues with the company’s G7 continuous glucose monitoring system. The stock, which has declined nearly 11% over the past week, currently trades at a P/E ratio of 47.32x, with InvestingPro analysis suggesting the shares are undervalued.

The research firm noted that deployment and accuracy problems that affected the G7 device earlier this year have "mostly resolved," according to a key opinion leader (KOL) interviewed by TD Cowen analysts on Monday.

This assessment aligns with feedback from other experts in the field and with recent statements made by DexCom executives, suggesting the company has addressed the technical challenges that had concerned some investors.

TD Cowen reported that the KOL observed "little share movement" resulting from the G7’s earlier challenges and expects minimal market share shifts going forward, indicating limited competitive damage from the temporary setbacks.

The firm expressed confidence that DexCom has largely overcome its G7-related problems, supporting its maintained Buy rating and price target for the diabetes technology company.

In other recent news, DexCom has been the focus of various analyst reports and market reactions regarding its G7 continuous glucose monitoring device. UBS maintained its Buy rating for DexCom, setting a price target of $106.00, despite concerns about the G7 sensor that have led to increased MAUDE events and injuries. Meanwhile, Hunterbrook Media issued a critical short report, alleging significant safety issues with the G7 device, including claims of inaccurate readings leading to hospitalizations and deaths. This report also mentioned an FDA inspection that found unauthorized design changes to the G7.

Oppenheimer downgraded DexCom’s stock rating from Outperform to Perform, citing challenges related to the accuracy and performance of the G7 device. This downgrade highlights the competition DexCom faces, particularly from Abbott’s Libre system. On a more positive note, Piper Sandler reiterated an Overweight rating on DexCom with a $100.00 price target, addressing potential headwinds such as Abbott’s ketone sensing technology and proposed competitive bidding rules from the Centers for Medicare & Medicaid Services. These developments reflect the mixed sentiment in the market regarding DexCom’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.