Oppenheimer analyst Steven Lichtman maintained a Buy rating on Dexcom (DXCM) today and set a price target of $167. The company’s shares closed yesterday at $118.62.
Lichtman commented:
“DexCom’s 1Q19 sales of $280.5M (+52% y/y) beat our/Street’s $242M/$246M estimates, on better performance in U.S. (+45%) and International (+79%). DXCM raised ’19 sales guidance to $1.25-1.30B from $1.175-1.225B. Gross margin lagged our estimate on accelerated investments to expand capacity; operating leverage more than offset and led to better operating margin of -2.7% vs. our -9.6%E. Pharmacy channel expansion continued; management announced that Cigna has provided pharmacy coverage. While competition remains high, particularly from Libre (and pending Libre2), management noted the market expansion underway and new market opportunities. On the latter point, DXCM is increasing investments in non- intensive T2, pre-diabetes, among others. Moreover, management expects continued enhancements to G6 in ’19; importantly, G7 remains on track for late ’20/early ’21 launch.”
According to TipRanks.com, Lichtman has currently no stars on a ranking scale of 0-5 stars, with an average return of -5.2% and a 44.5% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tandem Diabetes Care Inc, and Boston Scientific Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Dexcom with a $163.13 average price target, representing a 37.5% upside. In a report issued on April 29, Piper Jaffray also reiterated a Buy rating on the stock with a $165 price target.
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The company has a one-year high of $156.16 and a one-year low of $77.54. Currently, Dexcom has an average volume of 1.37M.
Based on the recent corporate insider activity of 123 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DXCM in relation to earlier this year.
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DexCom, Inc. is a medical device manufacturing company, which engages in the design, development, and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes. Its products include Dexcom G4 PLATINUM System, DexCom G5 Mobil, DexCom Share,and Mobile apps.
