DexCom selloff on bus comments a buying opportunity, says Bernstein

Bernstein says Dexcom management last Thursday met with investors as part of a medical technology bus tour and investors interpreted comments about U.S. sales realignment as a signal that Q2 revenue may disappoint, and the shares quickly dropped 7%. The firm sees the selloff as a buying opportunity. Based on a discussion with management, the analyst does not believe DexCom intended to signal anything about Q2 results. Management reminded Bernstein that they guided the Street to 12% sequential growth in global revenue from Q1 to Q2, which is fairly consistent with “normal” seasonality and already factors in anticipated disruption from the sales realignment, says the analyst. The firm sees the company’s 2024 guidance as conservative and keeps an Outperform rating on the name with a $150 price target.