DexCom (DXCM) PT Raised to $90 at BTIG

BTIG analyst Marie Thibault raised the price target on DexCom (NASDAQ: DXCM) to $90.00 (from $80.00) while maintaining a Buy rating.

The analyst comments "Dexcom reported Q2 revenue of $1.308B (+12% y/y org. and +13% rep.), $18M better than consensus of $1.290B. U.S. revenue of $933.4M (+11% y/y) was $7.5M better than consensus' $925.9M estimate while OUS revenue of $375.0M (+16% y/y org., +19% y/y rep.) was $10M better than the consensus $364.8M forecast. Adj. EPS of $0.70 was nine cents better than consensus, helped by strong gross margin and well-controlled operating spend. Global new customer starts were in line with Q1's record, with U.S. new starts sequentially higher, also likely in line with a domestic record. The U.S. strength was broad-based across all patient segments while International continues to benefit from reimbursement tailwinds. DXCM slightly raised its 2026 revenue outlook by $10M at the midpoint to $5.18B-$5.25B (+11%-13% y/y, prior $5.16B-$5.25B), and lifted its margin targets, including adj. GM of ~64% (prior 63%-64%), adj. operating margin of 23.5%-24% (prior 23%-23.5%), and adj. EBITDA margin of 31.5%-32% (prior 31%-31.5%). The G7 15-day rollout continues and remains on track for ~50% U.S. base conversion by year-end. Management continues to anticipate CMS coverage expansion for T2D non-insulin patients to go into effect in mid-2027. We view this quarter as a clean, high-quality beat with margin outperformance, and the CONNECT data as a helpful catalyst for the long-term T2D non-insulin opportunity. We are particularly impressed by the profitability and free cash flow generation. The profitability, product rollout, and potential reimbursement catalysts to come, combined with ~$600M in share repurchases during the quarter, make DXCM a compelling investment. We raise our PT from $80 to $90, based on ~5.5x our 12-24 month sales estimate. Reiterate Buy."

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