BTIG analyst Marie Thibault has reiterated their bullish stance on DXCM stock, giving a Buy rating yesterday.
Marie Thibault has given her Buy rating due to a combination of factors surrounding Dexcom’s recent developments. One significant reason is the FDA approval of Dexcom’s 15-day G7 sensor for adults with diabetes, which is a notable achievement as it meets and exceeds the iCGM performance standards. This approval is particularly positive given the context of an outstanding warning letter, indicating confidence in the product’s compliance and performance.
Moreover, the extended 15-day wear period of the G7 sensor aligns it more closely with competitors like Abbott’s Libre, enhancing its market competitiveness. The strategic timing of the approval and planned launch ensures that the sensor will be compatible with automated insulin delivery systems, which is crucial for its adoption. Additionally, this timing allows Dexcom to secure reimbursement coverage effectively. The shift from a 10-day to a 15-day wear period is expected to reduce costs significantly, with the potential for improved margins as the product scales, particularly by fiscal year 2026. These strategic moves underpin the Buy rating, reflecting confidence in Dexcom’s future performance.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $98.00 price target.
DXCM’s price has also changed slightly for the past six months – from $69.560 to $67.300, which is a -3.25% drop .