Tuesday, DexCom (NASDAQ:DXCM), the $31.2 billion medical device company, received continued support from Citi as analyst Joanna Wuensch reaffirmed a Buy rating with a steadfast $91.00 price target.
According to InvestingPro analysis, DexCom appears undervalued at its current price of $79.84, with analysts setting targets ranging from $75 to $120. Wuensch's evaluation followed DexCom's recent disclosure of its fourth-quarter 2024 results and the outlook for 2025.
The company's presentation in San Francisco spotlighted key growth drivers for the franchise, building on its impressive 16.2% revenue growth over the last twelve months. Among these, the anticipated second-half 2025 launch of the 15-day G7 in the United States stands out as a significant milestone. InvestingPro data shows DexCom maintains strong financial health with a "GREAT" overall score, supported by healthy profit margins of 61.7%.
The expansion of Stelo's distribution to include Amazon (NASDAQ:AMZN) and Lifetime, in addition to the existing channels such as stelo.com, physician business-to-business (B2B), and durable medical equipment (DME) cross-selling, was also emphasized as a strategic move to widen market reach.
Furthermore, DexCom anticipates a series of clinical publications that could bolster insurance coverage. These publications will cover a range of topics, including Type 2 non-intensive diabetes management, gestational diabetes, and the interplay between general health, wellness, and various comorbidities associated with diabetes.
Looking ahead, DexCom's management expects that within the next 18 to 30 months, all of its continuous glucose monitoring (CGM) platforms will transition to the 15-day model. This shift is seen as a response to market demand and an opportunity to enhance the company's profit margins and market presence.
Wuensch highlighted the positive preliminary results DexCom has reported, as well as the upcoming catalysts slated for 2025 that are anticipated to propel further growth. With these factors in mind, Citi predicts a continued uptrend in market sentiment towards DexCom and reasserts its Buy rating on the company's stock.
This aligns with the broader analyst consensus, which remains strongly bullish according to InvestingPro, which offers 13 additional key insights about DexCom's financial health and growth prospects in its comprehensive Pro Research Report.
In other recent news, Dexcom (NASDAQ:DXCM), a medical device company, posted fourth-quarter sales that exceeded expectations, reaching $1.113 billion. The company also announced its 2025 revenue forecast, projecting sales of $4.6 billion. Moreover, Dexcom and Abbott, another medical device company, have settled patent disputes and signed a cross-license agreement, a significant step towards collaboration in the field of analyte sensing technology.
Furthermore, BofA Securities maintained its Buy rating on Dexcom shares, highlighting the company’s potential for accelerated revenue growth and introduction of new products. Analysts from Piper Sandler and RBC Capital Markets also expressed optimism for Dexcom, with Piper Sandler expecting the company to maintain its 15% revenue growth outlook for 2025 and RBC Capital naming Dexcom among stocks offering the best value or potential upside.
These recent developments signify confidence in Dexcom's strategic direction, operational targets, and growth potential. It's important to note that these are recent developments and may influence investor decisions.
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