Dexcom (DXCM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Buy rating on the stock and has a $98.00 price target.
Larry Biegelsen has given his Buy rating due to a combination of factors surrounding Dexcom’s recent FDA warning letter. The letter, which pertains to manufacturing and quality management non-conformities, did not introduce any new observations beyond those already identified in previous inspections. Dexcom has proactively begun addressing these issues, implementing corrective actions that are expected to incur minimal costs and not impact their profit and loss statements.
Furthermore, the warning letter does not impede Dexcom’s production capabilities or its ability to ship products. The company has also confirmed that their regulatory reviews for the G7 15-day sensor and hospital CGM products remain unaffected. Importantly, Dexcom has reaffirmed its revenue guidance for 2025, indicating confidence in its financial outlook despite the regulatory challenges. These factors collectively support the Buy rating, as they suggest stability and continued growth potential for Dexcom.
Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Intuitive Surgical. According to TipRanks, Biegelsen has an average return of 11.2% and a 60.40% success rate on recommended stocks.
In another report released on March 4, Citi also maintained a Buy rating on the stock with a $104.00 price target.