DexCom, Inc. (NASDAQ:DXCM) was trading around 7% higher Friday afternoon, following the company’s reported Q3 results, with revenue of $650.2 million and EPS of $0.89, beating the Street estimate of $0.62.
Following the result, analysts at Berenberg Bank raised their price target on the company’s shares to $630 from $550, while maintaining their buy rating. According to the brokerage, the company delivered another 40%+ sensor growth quarter, reiterated the G7 launch timeline, increased guidance, and is now selling direct (having purchased its distributor) in the Australia and New Zealand market. While COVID remains a challenge when it comes to outreach to new doctors, the brokerage believes it is manageable and ultimately transient.
While the company’s management said that the delta variant is resulting in a more difficult approach to new doctors, the analysts at Berenberg Bank think that the updated guidance (to $2.425 billion - $2.45 billion from $2.35 billion -2.4 billion) is likely to be surpassed.