Key insights
- Mizuho raised DexCom's price target to $85, citing positive results from a diabetes study comparing continuous glucose monitoring (CGM) to routine care. The study showed a significant HbA1c reduction in CGM users, supporting potential CMS coverage expansion for Type 2 diabetes patients. This, along with strong analyst earnings revisions and an attractive PEG ratio, suggests positive sentiment for DexCom, potentially impacting medical device and healthcare sectors.
Investing.com - Mizuho raised its price target on DexCom Inc. shares (NASDAQ:DXCM) to $85 from $75 on Monday while maintaining an Outperform rating. The stock currently trades at $76.62, and notably, 10 analysts have revised their earnings upwards for the upcoming period, reflecting growing confidence in the company’s prospects.
The price target increase follows results from a randomized control trial presented at the 2026 American Diabetes Association conference in New Orleans. The study compared blood sugar control in Type 2 diabetes non-insulin patients using continuous glucose monitoring versus routine care using blood glucose meter monitoring.
The study achieved its primary endpoint of HbA1c reduction, a measure of monthly average blood sugar. The continuous glucose monitoring group achieved an average 1.6% decline versus an average 0.7% decline in the blood glucose meter control arm over the 26-week treatment horizon.
The net 0.9% HbA1c drop in the continuous glucose monitoring arm of the CONNECT study compares to an average 0.7% decline across comparable Type 2 continuous glucose monitoring studies despite the focus on a lower-risk population.
Mizuho said the CONNECT study supports Centers for Medicare and Medicaid Services coverage of 20 million to 25 million low-risk Type 2 diabetes patients by mid-next year. According to InvestingPro analysis, DexCom remains undervalued based on Fair Value metrics, with the stock trading at an attractive PEG ratio of 0.42 relative to its near-term earnings growth.
In other recent news, DexCom, Inc. announced several key developments. The company is set to present findings from the CONNECT randomized controlled trial, which investigates the benefits of its continuous glucose monitoring technology for adults with Type 2 diabetes not on insulin therapy, at the upcoming American Diabetes Association’s Scientific Sessions. Additionally, DexCom is launching a new app and acquiring Nutrisense as part of its strategic initiatives in diabetes management. In a separate issue, DexCom reported that two lots of its G7 sensors, intended for destruction, were stolen and sold by unauthorized vendors.
From an investment perspective, Canaccord has lowered its price target for DexCom shares from $100 to $82, while maintaining a Buy rating, due to margin outlook concerns. Piper Sandler has reiterated an Overweight rating with a $75 price target, noting the company’s financial guidance and commitment to using a significant portion of free cash flow for share repurchases. Truist Securities also reiterated a Buy rating with an $80 price target, highlighting DexCom’s strong growth potential and achievable revenue and margin goals through 2030. These developments reflect a mix of operational challenges and strategic growth opportunities for DexCom.
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