William Blair analyst Margaret Kaczor has maintained their bullish stance on DXCM stock, giving a Buy rating yesterday.
Margaret Kaczor’s rating is based on several considerations despite the recent FDA warning letter received by Dexcom. The company has assured that its full-year revenue target of $4.6 billion remains intact, indicating confidence in its financial outlook. Additionally, Dexcom does not foresee any significant disruption to its manufacturing capabilities, particularly with the addition of its largest facility in Malaysia.
Moreover, the warning letter does not impede Dexcom’s ability to secure 510(k) approval for new products, such as the anticipated 15-day G7. Historical precedents in the industry suggest that similar regulatory challenges have had minimal financial impact on companies, as seen with iRhythm. This context supports the view that Dexcom’s long-term prospects remain strong, justifying the Buy rating.
According to TipRanks, Kaczor is a 3-star analyst with an average return of 6.0% and a 45.57% success rate. Kaczor covers the Healthcare sector, focusing on stocks such as Staar Surgical, Insulet, and Inari Medical.