On Thursday, Jefferies reiterated a Buy rating and a $160.00 price target on shares of DexCom (NASDAQ:DXCM), a medical device company specializing in continuous glucose monitoring (CGM) systems. The reiteration follows the recent clearance by the U.S. Food and Drug Administration (FDA) of DexCom's latest product, Stelo, which is the first CGM device that consumers can purchase without a prescription.
The FDA's approval of Stelo was announced earlier this week, on Monday, with the product's market release scheduled for Summer 2024. The analyst noted that the approval and launch timing aligned with expectations, but the over-the-counter (OTC) availability of Stelo provided an unexpected benefit. This development is seen as an incremental positive for DexCom, as it could potentially expand the product's reach to a broader customer base.
In addition, during the Advanced Technologies & Treatments for Diabetes (ATTD) meeting on Tuesday, details emerged regarding a new CGM developed by Roche. While the specifications of Roche's CGM appear competitive on paper, the analyst expressed skepticism regarding Roche's ability to effectively compete at scale with established players such as DexCom and Abbott Laboratories (NYSE:ABT).
The analyst's comments suggest confidence in DexCom's market position and the potential growth opportunities afforded by Stelo's OTC status. The clearance by the FDA marks a significant milestone for DexCom, as it continues to innovate and lead in the CGM market space.
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