DexCom stock rating reiterated at Overweight by Piper Sandler

Published 05/09/2025, 13:14
DexCom stock rating reiterated at Overweight by Piper Sandler

Investing.com - Piper Sandler has reiterated an Overweight rating on DexCom (NASDAQ:DXCM) with a price target of $100.00. The company, currently valued at $31.66 billion, maintains a strong "GREAT" financial health rating according to InvestingPro analysis, with 11 analysts recently revising earnings estimates upward.

The research firm addressed investor concerns about potential headwinds facing DexCom , including the impact of ketone sensing technology from Abbott Laboratories and the Centers for Medicare & Medicaid Services’ proposed competitive bidding rule for continuous glucose monitoring systems and pumps.

Piper Sandler estimates these factors could create approximately 150 basis points of headwind for DexCom in 2027 at worst case, but believes penetration into the non-insulin-taking Type 2 diabetes patient population will more than offset these challenges.

The firm cited continued basal penetration, growth opportunities in Type 1 diabetes and intensively managed Type 2 diabetes patients in the domestic market, and improving international performance as key growth drivers for DexCom.

Despite the potential headwinds, Piper Sandler projects DexCom can maintain double-digit top-line growth in the teens, with the potential 15-day sensor supporting earnings per share growth, reinforcing the firm’s positive outlook on the stock.

In other recent news, DexCom reported strong financial results for the second quarter of 2025, exceeding both earnings and revenue expectations. The company achieved earnings per share of $0.48, surpassing the anticipated $0.45, while revenue reached $1.16 billion, above the forecasted $1.12 billion. Following these results, UBS adjusted its price target for DexCom to $106 from $105, maintaining a Buy rating on the company’s shares. The adjustment reflects the company’s strong quarterly performance, with top and bottom-line beats of 2.8% and 7.9% compared to consensus estimates. Additionally, Argus Research initiated coverage on DexCom with a Buy rating, setting a price target of $100. This decision was influenced by DexCom’s strong position in the continuous glucose monitoring market. These developments highlight positive investor sentiment around DexCom’s financial health and market position.

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