DexCom downgraded to Neutral from Outperform at Baird

Baird downgraded DexCom (DXCM) to Neutral from Outperform with a price target of $80, down from $161. The firm says it struggles to fully understand last night’s Q2 miss and sizable cut to the 2024 guidance. While DexCom can likely fix many of its issues over the next few quarters, what seems to be growing share gains for Abbott (ABT) in DexCom’s highest revenue U.S. durable medical equipment channel can’t be ignored, the analyst tells investors in a research note. The firm believes there may be early evidence of automated insulin delivery share gains for Abbott. With automated insulin delivery users making up 33% of DexCom’s global installed base, “this new uncertainty is key to our downgrade today,” writes Baird.