Baird raises DexCom stock to outperform, target to $104

Investing.com -- Baird upgraded DexCom Inc (NASDAQ: DXCM). to "Outperform" from "Neutral," citing progress in U.S. sales and upcoming catalysts. The price target was raised to $104 from $98.

DexCom's improved salesforce productivity and the potential for U.S. growth to return to low-to-mid teens by mid-2025 were key drivers. Recent advancements include earlier-than-expected progress on the G7 15-day sensor and potential FDA approval for hospital-based use.

The firm highlighted growing confidence in DexCom’s multi-year pipeline, including the G8 sensor, expected to bring advanced features like ketone monitoring by 2027. Expanding reimbursement for Type 2 diabetes patients is another tailwind.

Baird acknowledged competitive risks from Abbott's Libre 3 and potential Medicare repricing but expects DexCom to deliver revenue growth of 10-15% and EPS growth of 20% over the next 2-3 years.

With these factors, the stock’s valuation could rise to mid-20s multiples, Baird added.

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