Leerink Partners Cuts Price Target on DexCom (DXCM) Following 3Q

November 2, 2016 8:29 AM EDT
Get Alerts DXCM Hot Sheet
Price: $79.87 -0.42%

Rating Summary:
    16 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
Trade DXCM Now!
Join SI Premium – FREE

Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.

Leerink Partners maintained an Outperform rating on DexCom (NASDAQ: DXCM), and cut the price target to $100.00 (from $115.00), following the company's 3Q earnings report. DXCM reported revenue of $148.6M, ahead of the Street’s $146.6M. Higher OpEx drove EPS below expectations.

Analyst Danielle Antalffy commented, "DXCM shares could underperform today despite a 3Q16 sales beat given: (1) The company now believes the non-adjunctive dosing claim is likely an early 2017 event vs. before year-end; (2) Management highlighted confusion in the marketplace around competition, notably MDT's [MP] now-approved 670G set to launch in the spring 2017 as well as international pressure from ABT's [MP] Libre; and (3) The company spent more than expected, something we believe DXCM has been fairly transparent about. To us, none of this changes the long-term growth trajectory or the ~$6B + total addressable market opportunity for DXCM specifically and CGM broadly. DXCM reported 3Q16 revenue of $148.6M (+41%), ahead of our $148.0M estimate and the Street’s $146.6M. The top-line growth level remains above the high-end of management’s goal of 35%-40%, supporting our view that this level of growth should be sustainable for the next few years. And higher OpEx drove EPS below expectations, but this is largely due to a ramp in R&D expense related to G6 pivotal study and SG&A expenses associated with international expansion -- both critical for DXCM's long-term growth trajectory."

For an analyst ratings summary and ratings history on DexCom click here. For more ratings news on DexCom click here.

Shares of DexCom closed at $77.92 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities


Add Your Comment