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- RBC Capital Markets has initiated DexCom (NASDAQ:DXCM) with an outperform rating noting that the continuous glucose monitor manufacturer is innovative in a total addressable market that is growing.
- The firm has a $165 price target (~25% upside based on Monday’s close).
- RBC says that regarding the U.S. insulin intensive market, Type 1 is ~60% penetrated and Type 2 ~50% penetrated. However, the company is poised to expand into new markets with established reimbursement such as Type 2 basal-only, which has ~15% penetration and Type 2 non-II problematic hypoglycemia with <4% penetration.
- Analyst Shagun Singh said that DexCom (DXCM) has a multi-year runway ahead. “It is poised to be among the fastest-growing large-cap MedTech companies with immediate catalysts in Stelo (first no-prescription CGM) and GLP-1 adoption while driving meaningful OM expansion to industry highs over time.”
