DexCom stock rating reiterated at Overweight by Piper Sandler

Investing.com - Piper Sandler has reiterated its Overweight rating and $100.00 price target on DexCom (NASDAQ:DXCM), following investor calls with Midwest diabetes clinicians this week. The diabetes care market continues to attract significant attention from major players like Medtronic (NYSE:MDT), currently trading near its 52-week high with a substantial market cap of $120.8 billion.

The research firm noted that the continuous glucose monitoring (CGM) market is experiencing strong growth, with basal insulin users being the primary driver of this expansion.

Clinicians reported that DexCom remains the preferred choice for insulin pump users, while Abbott’s Libre faces challenges in this segment. The clinicians expressed interest in ketone sensing capabilities but indicated they value certain DexCom features more highly.

Omnipod manufacturer Insulet (NASDAQ:PODD) continues to dominate the insulin pump market, though clinicians believe market share will shift once more companies introduce patch products available through pharmacies.

New market entrant Sequel is experiencing typical commercial challenges faced by other pump providers and currently has limited market impact, while the integration of Abbott into Medtronic is not expected to significantly affect Medtronic’s market position.

In other recent news, Medtronic plc announced that its Hugo robotic-assisted surgery system successfully met primary safety and effectiveness endpoints in the Enable Hernia Repair clinical study. This study, the first of its kind for robotic-assisted hernia surgery in the United States, involved 193 patients and achieved a 100% surgical success rate. Additionally, TD Cowen reiterated a Buy rating and maintained a $106 price target for Medtronic, highlighting the potential for Medicare coverage of its renal denervation therapy. In contrast, Piper Sandler maintained a Neutral rating with a $90 price target, citing challenges in Medtronic’s surgical business due to shifts toward robotic procedures and GLP-1 medications. Wolfe Research also maintained a Peerperform rating, acknowledging growth challenges despite potential cost-cutting opportunities. Meanwhile, Orchestra BioMed Holdings, Inc. presented long-term data on its AVIM therapy, demonstrating sustained blood pressure reduction over an average of 3.6 years. These developments reflect ongoing advancements and challenges in the medical technology sector.

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