DexCom raised to Overweight at Wells Fargo on upcoming catalyst and sales potential
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Following a three-day selloff, DexCom (DXCM
+2.9%) shares are trading higher after Wells Fargo upgraded the maker of continuous glucose monitoring (CGM) systems to Overweight from Equal Weight. The price target set to $575 per share implies a premium of ~33.8% to the last close.

The upcoming launch of the G7 CGM device could turn out to be a major catalyst for DexCom (NASDAQ:DXCM) in 2022, the analysts led by Larry Biegelsen argue, citing what they called âbest-in-class clinical data.â
The team also notes that the market opportunity for CGMs in type 2 non-intensive insulin âis becoming a reality,â with the potential to double the addressable market for CGMs.
In addition, the pricing gap between the rival device, Libre from Abbott (NYSE:ABT) âhas narrowed over the past few years to a more reasonable level,â Biegelsen and the analysts wrote. They also predict a 2 â 5% upside to DexCom sales in 2022 following Medtronicâs (NYSE:MDT) regulatory setback to its diabetes business.