DexCom, Inc. Shares Jumped 30% Following Positive CMS Decision; Oppenheimer Reiterates Outperform


Oppenheimer analyst Steven Lichtman reiterates an Outperform rating on shares of DexCom, Inc.(NASDAQ:DXCM), following the Center for Medicare & Medicaid Services’ (CMS) announcement that Dexcom’s G5 continuous glucose monitoring system will now be covered and reimbursed. DexCom shares reacted to the news, jumping 30%, as of this writing.

Lichtman commented, “Established payment levels in the CMS decision for sensors/transmitters looks reasonable, in our view. DXCM will work with CMS to get coverage fully implemented in the coming months, but certainly timing looks to fall ahead of the 1H18 previous expectation. Given this unique opportunity to DXCM, we see this as another offset to competition in 2017 along with the recent dosing claim approval and expanding international reimbursement. And it continues to build the story toward additional big positives in 2018 including launch of the next-generation G6 (early ’18E) and first product from the GOOG Verily collaboration (2H18E).”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Lichtman has a yearly average return of -2.9% and a 54% success rate. Lichtman has a 3.6% average return when recommending DXCM, and is ranked #3974 out of 4342 analysts.

Out of the 12 analysts polled by TipRanks, 11 rate Dexcom stock a Buy, while 1 rates the stock a Hold. With a downside potential of nearly 5%, the stock’s consensus target price stands at $83.73.