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Read Here Why Did This Analyst Cut DexCom's Price Target

Benzinga · 04/29/2022 13:56
  • Raymond James has lowered the price target of DexCom Inc (NASDAQ:DXCM) to $486 from $538, OUTPERFORM RATING UNCHANGED.
  • The analyst Jayson Bedford says that 1Q revenue was modestly (~1%) higher than our expectation. Still, investors were likely expecting a bit more, particularly in the U.S., as international was the source of upside. 
  • The stock could be soft on this result, but we remain confident in the DXCM story. 
  • G7 remains one of the more important new product cycles in Med Tech in 2022, notes Bedford, which should make for a strong 2H22/2023. 
  • "We also believe the expansion of Dexcom ONE should also be additive to growth. There was little change to our estimates based on DXCM's above-average growth profile supported by a large, under-penetrated TAM.
  • DexCom reported Q1 sales of $628.8 million, +25% Y/Y (+22% organic), beating the consensus of $623.36 million. There was no change to DXCM's 2022 guidance.
  • EPS of $0.32 missed the consensus of $0.52.
  • SVB Leerink maintains Outperform on DexCom, with the price target down to $500.
  • Piper Sandler keeps Overweight but cuts the price target to $480.
  • Also, Morgan Stanley maintains Equal-Weight with a price target lowered to $492.
  • Price Action: DXCM shares are up 1.09% at $417.73 during the market session on the last check Friday.