Stifel Nicolaus analyst Mathew Blackman has maintained their bullish stance on DXCM stock, giving a Buy rating on March 7.
Mathew Blackman has given his Buy rating due to a combination of factors surrounding Dexcom’s current situation and future prospects. Despite the recent receipt of a warning letter concerning two of Dexcom’s manufacturing facilities, the company does not anticipate any significant impact on its manufacturing capacity or its 2025 revenue guidance. This suggests confidence in Dexcom’s ability to manage the situation effectively without disrupting its operations or financial performance.
Furthermore, there are no anticipated restrictions on manufacturing or product approvals that could affect upcoming product launches, such as the G7 15-day sensor. The issues identified in the warning letter are related to processes and documentation rather than patient safety or product recalls, indicating that the problems are manageable. Dexcom is already implementing changes to address these deficiencies, and while there may be some remediation costs, they are not expected to alter the company’s overall financial outlook significantly.
In another report released on March 7, Bank of America Securities also maintained a Buy rating on the stock with a $105.00 price target.