A large number of analysts are pumping DXCM stock on November 7, 2019, after the company reported earnings.
The pump and upward move is way overdone IMO and I wouldn’t touch this stock with a 20 foot pole.
The news was that DexCom raised FY19 revenue view to $1.425B-$1.450B from $1.325B-$1.375B, consensus was $1.37B. Sees FY19 Non-GAAP operating margin of approximately 9% versus previous expectations of 7% and Non-GAAP adjusted EBITDA margin of approximately 19.5% versus previous expectations of 18.5%.
The analyst pump was relentless on November 7, 2019, in early trading.
Piper Jaffray analyst JP Kim raised his price target on DexCom to $200 and kept his Outperform rating after its Q3 earnings beat and FY19 guidance raise. The analyst notes that the quarter exceeded expectations in “nearly every metric” with “exceptional” U.S. performance and “very strong” international business. Kim adds that the guidance is likely “conservative” as DexCom has a lot of momentum on the commercial side, with Medicare coming next year along with its continued international growth trend.
Guggenheim analyst Christopher Pasquale upgraded DexCom to Buy from Neutral.
JPMorgan analyst Robbie Marcus raised his price target for DexCom to $215 from $190 saying the company “posted another outstanding quarter.” While management raised sales guidance by a little less than twice the Q3 beat, the implied Q4 guide is “readily achievable/beatable,” Marcus tells investors in a post-earnings research note. He sees “clear momentum” setting up a “bullish” 2020 for DexCom and reiterates an Overweight rating on the shares.
Oppenheimer analyst Steven Lichtman raised his price target for $205 from $180 and maintained an Outperform rating following the company’s Q3 results which significantly exceeded the Street’s expectations, led by outperformance in both U.S. and International. While competition remains high, overall market acceleration continues and DexCom has numerous drivers ahead including continuing pharmacy channel expansion, pump partner launches, recent G6 launch for Medicare patients, international expansion and G7, Steven Lichtman tells investors in a research note.
Jefferies analyst Raj Denhoy raised his price target for DexCom to $200 from $180 saying the company posted another “blowout” quarter as continuous glucose monitoring adoption trends “show no signs of abating.” The company’s U.S. growth was 53% and outside U.S. growth 39%, Denhoy tells investors in a research note. He keeps a Buy rating on the shares.
Baird analyst Jeff Johnson raised his price target on DexCom to $240 from $195 following strong Q3 results. The analyst noted revenues easily beat the Street and management raised guidance which he believes could drive sustainable upward momentum for the stock as Libre concerns have faded, G7’s launch is creeping closer, and the power of pharmacy access is increasingly being felt. Johnson reiterated his Outperform rating on DexCom shares.
Raymond James analyst Jayson Bedford raised his price target for DexCom to $189 from $172 following the company’s Q3 results. In a research note to investors, Bedford says that while there will always be competitive “noise,” Dexcom remains one of the best growth stories in MedTech, supporting his Outperform rating.
DXCM stock trades at a P/S metric of 11.42. This overvalued stock has a market cap of $13.95 billion but the company did just $1.22 billion in sales last year! The stock has negative earnings and so it doesn’t even have a P/E ratio.
To really screw over the maximum number of traders what the DexCom should do is announce a big fat share offering and dilute its shares back down and pull in hundreds of millions of dollars on the analyst pump.