William Blair analyst Brandon Vazquez has maintained their bullish stance on DXCM stock, giving a Buy rating yesterday.
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Brandon Vazquez has given his Buy rating due to a combination of factors that suggest Dexcom’s current stock weakness presents a buying opportunity. Despite the third-quarter sales and earnings per share (EPS) surpassing expectations, the stock experienced a decline, which Vazquez attributes to misunderstandings about U.S. sales growth and 2026 projections. The lower U.S. sales growth is seen as a temporary issue related to the company’s annuity model, while the 2026 guidance is perceived as a strategic move by management to set achievable targets for the new CEO.
Furthermore, Vazquez highlights that Dexcom continues to show strong new patient additions, with a 20% increase in the third quarter, and anticipates reduced pricing pressures in the coming year. This positions the company for potential sales growth nearing 20%. Additionally, Dexcom is expected to benefit from margin expansion opportunities as it overcomes previous challenges related to scrap and freight costs, and prepares for the launch of its 15-day sensor. These factors collectively support the Buy rating, with the stock trading at 24 times the projected 2026 EPS and earnings growth expected to reach 20%.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $84.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DXCM in relation to earlier this year.