Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Canaccord Sticks With Dexcom As Shares Tumble Amid Unexpected Label Addition

Courtesy of Benzinga.

Canaccord Sticks With Dexcom As Shares Tumble Amid Unexpected Label Addition

Despite a more than 35 percent plunge in DexCom, Inc. (NASDAQ: DXCM)’s stock, analysts at Canaccord Genuity continue to hold a bullish outlook. The firm’s Kyle Rose maintains a Buy on DexCom’s stock with a price target lowered from $90 to $69.

DexCom’s stock was hard hit on Thursday after the U.S. Food and Drug Administration (FDA) granted approval to Abbott Laboratories (NYSE: ABT)’s FreeStyle Libre glucose monitoring system, which creates “more questions than answers” but doesn’t imply investors should abandon DexCom, the analyst said (see Rose’s track record here).

Approval for FreeStyle Libre was expected to occur at some point in 2017. What was unexpected was the label’s inclusion of an insulin dosing indication, Rose said. Based on DexCom’s notable selloff, investors may have been expecting this outcome.

“What we do know is that Libre’s success to date OUS has clearly validated the patient demand for value-added technology at lower costs — which thus expands the market to patients, including Type 2 patients, who otherwise would not have evaluated the technology,” Rose said.

“Longer term, we view this as a positive tailwind for CGM adoption broadly as it will drive continued market expansion, allow more patients to realize the utility of better glucose management, and position industry players to compete on product strengths/weakness to further segment the market.”

It’s “difficult to handicap” what impact this event will have on Dexcom’s growth profile, Rose said. Even with the more competitive nature of the market factored in, the analyst still sees a path for growth, although the following downward revisions were made:

  • 2017: From a $0.66 per share loss on revenue of $722.0 million to a loss of $0.72 per share on revenue of $710.3 million.
  • 2018: From a $0.16 per share loss on revenue of $958.7 million to a loss of $0.72 per share on revenue of $710.3 million.
  • 2019: From a positive EPS of $0.48 per share on revenue of $1.2055 billion to a loss of $0.289 per share on revenue of $1.0513 billion.

Related Links:

Fitbit Tracking Higher After Deal With Dexcom

Report: Apple Wants To Create A Better Way To Treat Diabetes

Latest Ratings for DXCM

Date Firm Action From To
Sep 2017 Cowen & Co. Maintains Outperform
Sep 2017 Canaccord Genuity Maintains Buy
Sep 2017 Barclays Maintains Equal-Weight

View More Analyst Ratings for DXCM


View the Latest Analyst Ratings

Posted-In: Diabetes FDA FreeStyle Libre Kyle RoseAnalyst Color Health Care Analyst Ratings General Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!