Bitcoin price today: tumbles below $90k as Fed cut doubts spark risk-off mood
Investing.com - Stifel resumed coverage of DexCom (NASDAQ:DXCM) with a Buy rating and set a price target of $85.00, according to a research note published Monday. The company, currently trading at $68.43, shows strong analyst support with a consensus recommendation of 1.44 (Strong Buy). According to InvestingPro analysis, DexCom appears undervalued based on its Fair Value estimates.
The research firm cited DexCom’s increasing market share in the Type 2 diabetes segment, where overall market penetration continues to grow. Supporting this expansion, the company has demonstrated solid revenue growth of 9.3% over the last twelve months, with analysts forecasting 15% growth for FY2025. Stifel’s analysis found that physicians were particularly enthusiastic about the company’s G7 15-day sensor, rating it more favorably than competing continuous glucose monitoring (CGM) innovations.
Stifel projected that the 15-day sensor could enhance DexCom’s gross margin in 2026, potentially contributing to year-over-year EBITDA margin expansion. The firm acknowledged certain risks, including the ongoing management transition and perceptions around G7 safety.
The research note pointed out that DexCom shares have recently declined despite the upcoming 15-day product cycle and revenue growth that should align more closely with the company’s healthy volume growth trends.
Stifel concluded that DexCom represents its top investment choice within the diabetes market sector, leading to the Buy recommendation.
In other recent news, DexCom has faced multiple developments concerning its G7 continuous glucose monitoring system. TD Cowen maintained its Buy rating and a $100 price target, noting that earlier deployment and accuracy issues with the G7 device have mostly been resolved. UBS also upheld its Buy rating with a $106 price target despite market concerns over increased MAUDE events and injuries related to the G7 sensor. However, Oppenheimer downgraded DexCom from Outperform to Perform, pointing to ongoing accuracy and performance challenges with the G7 device. Adding to the concerns, Hunterbrook Media released a short report alleging serious safety issues, including claims of hospitalizations and deaths due to inaccurate readings from the G7 device. The report also mentioned an unauthorized design change to a key component of the device, which an FDA inspection reportedly identified as inferior in accuracy. These developments highlight varying analyst perspectives and ongoing scrutiny of DexCom’s G7 system.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.