Dexcom’s Strong Growth Potential and Market Position Justify Buy Rating

Dexcom (DXCM) has received a new Buy rating, initiated by Truist Financial analyst, Richard Newitter.

Richard Newitter has given his Buy rating due to a combination of factors that highlight Dexcom’s strong position and growth potential in the Continuous Glucose Monitoring (CGM) market. Dexcom is a leading innovator in this rapidly expanding field, and it is well-positioned to increase its market share in both type 1 and type 2 diabetes markets, which are currently underpenetrated. The company is expected to sustain mid-teens revenue growth by increasing adoption in these large markets, with significant growth potential in the type 2 diabetes segment, which is less penetrated.
Moreover, Dexcom is anticipated to benefit from ongoing reimbursement wins, positive guideline updates, and upcoming clinical data, which are expected to drive momentum from the second half of 2025 onwards. The company’s shift towards higher-margin products, like the 15-day wear CGM, is expected to contribute to margin improvement and a robust earnings growth rate. These factors, combined with a favorable market environment and strategic initiatives, underpin Newitter’s confidence in Dexcom’s ability to deliver strong financial performance, justifying the Buy rating and the price target of $102.

In another report released on June 11, Piper Sandler also reiterated a Buy rating on the stock with a $100.00 price target.