Dexcom’s (NASDAQ: DXCM) G4 Platinum Continuous Glucose Monitoring System received FDA approval yesterday on January 27th. Dexcom develops monitors that detect glucose levels to help manage diabetes.

The new device utilizes Bluetooth technology to connect the monitoring system to the patient’s smartphone. The patient’s phone sends the glucose count to up to 5 chosen “followers,” who will receive notifications, allowing family of the patient to have “peace of mind and reassurance when they are apart.” Since the new monitor can be used for children as young as two years old, it will be particularly beneficial for caregivers of toddlers and children who have diabetes. Dexcom anticipates the devices will be ready for shipping in early March.

Dexcom CEO Kevin Sayer noted, “The Dexcom Share receiver represents a significant step forward for our company and our mobile strategy, but more importantly, it will provide a huge improvement for people managing their diabetes and for those parents and caregivers who help them each and every day.”

On January 26th, analyst Tao Levy of Wedbush reiterated an Outperform rating on Dexcom with a $70 price target. In light of Dexcom’s new device earning FDA approval, Levy noted, “We believe [the new receiver with Bluetooth technology] could drive greater adoption of CGM technology, especially among the pediatric patients where a caregiver also can receive the data.” Surrounding the market, the analyst noted, “We estimate the current penetration in the US CGM market at approximately 10%, and with each 1% increase in penetration, it would potentially represent approximately $24 million in revenue for DXCM.” He continued, “We are incrementally more confident in our Street-high estimates and continue to believe the company is well positioned to expand the underpenetrated CGM market, given its best-in-class CGM technology.”

Tao Levy has rated Dexcom 3 times since August 2013, earning a 100% success rate and a +61.6% average return per DXCM recommendation. Overall, Levy has a 71% success rate recommending stocks with a +24.1% average return per recommendation.

Separately on January 26th, analyst William Plovanic from Canaccord Genuity maintained a Buy rating on Dexcom with a price target of $69.

William Plovanic has rated Dexcom 11 times since July 2011 with a 90% success rate recommending the stock and a +60.0% average return per DXCM recommendation. Overall, Plovanic has a 70% success rate recommending stocks with a +22.1% average return per recommendation.

On average, the top analyst consensus for DXCM on TipRanks is Moderate Buy.