DexCom Raises Price Target to $91 After G7 Trial Shows 1.6% A1C Drop
DXCM•Raymond James lifted its DexCom price target to $91, maintaining its Strong Buy as shares traded near $76.62, underpinned by expectations of double-digit revenue growth and a $1 billion share repurchase. Positive CONNECT trial results showed a 1.6% A1C reduction and five more daily hours in target range.
1. Analyst Raises Price Target
Raymond James increased its DexCom price target to $91 from $81 and reiterated a Strong Buy as shares traded near $76.62, signaling confidence in the company’s growth outlook.
2. CONNECT Trial Outcomes
In the randomized CONNECT trial for non-insulin adults with Type 2 diabetes, the Dexcom G7 system delivered a 1.6% A1C reduction, 0.9% more than the control group, and provided users with five additional hours daily within target glucose range.
3. Financial Outlook and Buyback
DexCom projects double-digit revenue growth for the coming quarters and has authorized a $1 billion share repurchase program to enhance shareholder value and optimize its capital structure.
4. Market Reaction
Shares outperformed peers on a strong trading day as investors reacted positively to the improved clinical data, higher price target and substantial buyback plan.
