DexCom stock price target raised to $106 from $105 at UBS

Investing.com - UBS raised its price target on DexCom (NASDAQ:DXCM) to $106.00 from $105.00 on Thursday, while maintaining a Buy rating on the continuous glucose monitoring company’s shares. According to InvestingPro data, DexCom’s stock currently appears undervalued, with analyst targets ranging from $83 to $115.

The price target adjustment follows DexCom’s quarterly results, which showed top and bottom-line beats of 2.8% and 7.9% versus consensus estimates, respectively. The company has maintained strong financial health, with revenue growth of 9.1% and a healthy gross profit margin of 59.4%. Despite these strong fundamentals, DexCom shares declined in after-market trading.

UBS noted that the market reaction may have been influenced by several factors, including commentary about new patient additions being in-line with the previous quarter, although this represented an all-time record quarter. The modest guidance raise, which came in below the level of the quarterly beat, was another potential factor. InvestingPro analysis reveals several positive indicators, including strong cash flows and moderate debt levels. Subscribers can access 12 additional exclusive ProTips for deeper insights.

The firm also highlighted that some investors may have been caught off guard by the announced CEO change, with Jake Leach, who has over 20 years of experience at DexCom as COO and previously as CTO, taking the helm.

UBS remains positive on DexCom’s outlook, pointing to ongoing customer demand, steady international expansion, and potential gross margin improvements in the second half of 2025 from the launch of the 15-day G7 product.

In other recent news, DexCom Inc. reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) were $0.48, surpassing the expected $0.45. Additionally, DexCom’s revenue reached $1.16 billion, exceeding the forecasted $1.12 billion. These results highlight the company’s ability to perform above market expectations. Analyst firms have taken note of this performance, with some suggesting potential positive future implications. However, specific details on upgrades or downgrades from analysts were not mentioned. These developments are part of recent updates from DexCom.

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