Wells Fargo analyst Larry Biegelsen has maintained their bullish stance on DXCM stock, giving a Buy rating yesterday.
Larry Biegelsen has given his Buy rating due to a combination of factors revolving around Dexcom’s (DXCM) recent advancements and market opportunities. The FDA clearance of Dexcom’s Stelo as the first over-the-counter (OTC) continuous glucose monitor (CGM) in the U.S. was a key surprise element that plays into this optimistic outlook. This new product is expected to generate $40 million in sales within the same year of its launch. Stelo’s design caters to a broad market, including type 2 diabetes patients not using insulin, and potentially the larger health and wellness segment, due to the FDA’s non-restrictive labeling.
Moreover, Stelo’s competitive pricing strategy and the anticipated growth in market share are pivotal to the Buy rating. The product will initially be available as a cash-pay option, with the aim to be competitive with existing products such as Abbott’s Libre. Dexcom’s management anticipates that Stelo will contribute approximately 100 basis points to growth in 2024, translating to significant revenue, mostly in the latter half of the year. The long-term potential is amplified by the immense market opportunity, targeting not only the 25 million+ U.S. individuals with type 2 diabetes who are not on insulin but also the roughly 90 million+ with pre-diabetes, highlighting the substantial upside beyond 2024.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $170.00 price target.
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Dexcom (DXCM) Company Description:
California-based DexCom, Inc. is a medical device manufacturing company. The company designs, develops and focuses on commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes. Its products include DexCom G4 PLATINUM System, DexCom G5 Mobil, DexCom G6, and DexCom Share.
Read More on DXCM:
- DexCom’s (NASDAQ:DXCM) Stelo Becomes the First Glucose Monitor to be Cleared for OTC Use
- DexCom announces new CGM data, direct to Apple Watch functionality in Q2
- DexCom call volume above normal and directionally bullish
- Dexcom Finalizes Stock Warrant Termination and Equity Deals
- Coleman’s Tiger Global bought Broadcom and DexCom during Q4
