DXCM inventory hits six-month excessive after Q3 beat (NASDAQ:DXCM)

DexCom (NASDAQ:DXCM) climbed ~16% intraday Friday to succeed in the very best degree since April after the medical system maker posted better-than-expected financials for Q3 2022, drawing favorable views on Wall Road.

After the outcomes, the analysts from Baird, Wells Fargo, Cowen, and Citi raised their worth targets on the San Diego, California-based maker of steady glucose monitoring (CGM) techniques.

“3Q outcomes checked lots of containers,” Baird analysts led by Jeff Johnson famous, reiterating their Outperform ranking and boosting the worth goal on the inventory to $120 from $97 after the corporate’s earnings name on Thursday.

With DXCM’s income rising ~18% YoY to $769.6M in the course of the quarter, Johnson and the staff anticipate the corporate to speed up its world income progress to the low/mid-20%+ vary subsequent 12 months and maintain the expansion at that degree for a minimum of subsequent 3-5 years.

The staff additionally highlights a number of upcoming catalysts that would additional generate upside for the inventory, together with the potential FDA approval and launch of the corporate’s G7 CGM system and a current Medicare proposal to increase protection for CGM gadgets.

“We consider these catalysts must also make DXCM a defensive play in an more and more unsure macro setting, including to the attraction of this inventory heading into 2023,” Baird concluded.

The earnings-led rally comes at a time when DexCom (DXCM) trades ~16% beneath its year-ago degree, as indicated on this graph.