Piper Sandler sees strong CGM market benefiting Dexcom, Abbott

Published 23/06/2025, 15:04
Piper Sandler sees strong CGM market benefiting Dexcom, Abbott

Investing.com - Piper Sandler highlighted growth opportunities in the continuous glucose monitoring (CGM) market following the American Diabetes Association (ADA) conference, with (NASDAQ:DXCM) and (NYSE:ABT) positioned as key beneficiaries. Abbott, with its robust market capitalization of $231 billion and steady revenue growth of 5% over the last twelve months, stands out as a prominent player in the Healthcare Equipment & Supplies industry. InvestingPro analysis suggests Abbott is currently trading near its Fair Value, with 12 additional ProTips available for subscribers.

The firm observed robust CGM adoption among basal insulin patients, with Dexcom gaining market share and Type 2 diabetes representing a significant growth driver. Piper Sandler analysts met with six public diabetes companies during the conference and hosted a luncheon with two Midwest clinicians who confirmed strong CGM category expansion. Abbott's strong financial position is evidenced by its 55-year track record of maintaining dividends, currently yielding 1.77%, and its "GREAT" financial health score according to InvestingPro's comprehensive analysis framework.

In the insulin pump segment, (NASDAQ:PODD) continues to dominate the market while (NASDAQ:TNDM) attracts healthcare providers with its algorithm. Piper Sandler noted that Tandem's upcoming Mobi tubeless pump, expected in mid-2026, represents a potential catalyst, though the company needs margin improvements to boost its stock performance.

(NASDAQ:BBNX) (Beta Bionics) is seeing good adoption of its iLet pump system, with Piper Sandler indicating the company may soon submit its patch pump for regulatory approval. The firm suggested clearance in 2026 could serve as a catalyst for Beta Bionics stock.

(NYSE:MDT) faces ongoing challenges in its diabetes business, with Piper Sandler maintaining a Neutral rating despite products in development. The firm ranks its diabetes stock preferences as Dexcom, Insulet, Beta Bionics, and Tandem in descending order, with Abbott labeled as its favorite large-cap name in the sector. Trading at a P/E ratio of 17.16, Abbott demonstrates strong market fundamentals. For deeper insights into Abbott's valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with analysis of 1,400+ other top stocks.

In other recent news, Abbott Laboratories has reported significant developments across various sectors. The company received FDA approval for its Tendyne transcatheter mitral valve replacement system, aimed at treating patients with severe mitral annular calcification. This approval marks an important addition to Abbott's minimally invasive structural heart therapies in the U.S. Furthermore, Abbott announced a quarterly dividend of 59 cents per share, continuing its long-standing history of dividend payouts, which now stands at 406 consecutive quarters.

Analyst firms have also made notable adjustments to their outlooks on Abbott. Bernstein SocGen increased its price target for Abbott to $144, maintaining an Outperform rating, highlighting the company's robust performance with an 8.3% organic sales growth, excluding COVID-19 testing revenue. Oppenheimer maintained its Outperform rating with a $140 price target, expressing optimism about Abbott's Volt system and glucose-ketone monitoring technology. Additionally, Abbott's FreeStyle Libre technology has shown promising results in reducing cardiovascular-related hospitalizations for people with diabetes, according to the REFLECT studies.

These developments suggest a positive trajectory for Abbott, with advancements in medical technologies and financial stability, as indicated by the analyst firms' ratings and the FDA approval.

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

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