On Friday, Goldman Sachs initiated coverage of DexCom (DXCM) stock with a Buy rating and a price target of $104 as part of a broader research note commencing coverage on Diabetes Medical Technology. Goldman Sachs expects the Diabetes technology market to sustain a double-digit growth. In particular, the investment bank has a “constructive view” on DexCom’s, a continuous glucose monitor (CGM) maker, technology and long-term opportunity.
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Goldman Sachs Initiates DXCM with a Buy Rating
Goldman Sachs analyst David Roman sees potential upside from consumer-related adoption of DexCom’s offerings, which is not yet reflected in the company’s guidance or in his estimates.
Roman also expects DexCom to deliver strong profitability leverage through the balance of 2025. He contends that the market is underappreciating the degree of P&L (profit & loss statement) or profitability upside in DexCom’s model as gross margins expand.
DexCom stock has advanced 9.1% year-to-date, with a 19% jump over the past month. The company delivered mixed results for the first quarter of 2025, with sales exceeding estimates while earnings lagged expectations. The company reduced its full-year gross margin guidance due to incremental costs associated with short-term supply factors, with the company rebuilding its finished goods inventory to optimum levels. Nevertheless, DexCom kept its full-year revenue guidance intact, reflecting strong demand for its products.
Is DXCM Stock a Good Buy?
With 16 Buys and one Hold, Wall Street has a Strong Buy consensus rating on DexCom stock. The average DXCM stock price target of $99.13 implies about 17% upside potential from current levels.
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