Buy Rating Reaffirmed on Dexcom as Margin Strength and Global Patient Growth Offset U.S. CGM Concerns; Price Target Reset to $75

Josh Jennings, an analyst from TD Cowen, maintained the Buy rating on Dexcom. The associated price target was lowered to $75.00.

Josh Jennings has given his Buy rating due to a combination of factors that signal durable growth and improving profitability at Dexcom. He notes that, despite a modest U.S. revenue shortfall that reinforced bearish worries about a slower domestic CGM market, the company delivered record worldwide new patient starts, sequential U.S. new patient growth, and solid international expansion, supporting confidence in future demand.

Jennings also highlights broad-based margin strength, with gross, operating, and EBITDA margins all topping expectations, helped by manufacturing efficiencies, logistics savings, and leverage in operating expenses. He emphasizes that management raised profitability guidance and maintains conviction that expanded CMS coverage for Type 2 patients not on insulin should reignite U.S. growth, which underpins the Buy rating even as the official price target is reset to $75.

In another report released on April 20, Goldman Sachs also maintained a Buy rating on the stock with a $82.00 price target.