Stifel Reiterates Buy Rating on DexCom (DXCM)

Stifel analyst Mathew Blackman reiterated a Buy rating and $100.00 price target on DexCom (NASDAQ: DXCM).

The analyst comments "This morning, DXCM announced FDA approval of 15-day G7 and reiterated prior 2H25 commercialization timelines. Importantly, this on-time approval should quell recent concerns about the Warning Letter impacting 15-day approval timelines and DXCM day-to-day operations. Beyond mitigating Warning Letter “risk”, the margin implications of this approval are extremely important. As a reminder, DXCM currently contemplates minimal revenue/margins contribution from 15-day in 2025 guidance -- in our model, we also take a conservative approach and do not reflect any 15-day-driven demand uptick. Still, we do account for significant margin expansion over the coming years as DXCM transitions the installed base to 15-day -- simply transitioning from 3 sensors to 2 sensors/month will push margins up multiple hundreds of basis points, all things equal. And, the biggest toggle in our DCF valuation is...Gross Margin, with every 100bps of lift translating to ~$5/share."

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 $66.84 yesterday.

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