DexCom Upgraded to Outperform by Evercore on Growth and Margin Expansion Outlook

Evercore ISI upgraded DexCom (NASDAQ: DXCM) to Outperform from In Line and set a $90 price target, citing a strong outlook for revenue growth and margin expansion.

The firm said it expects DexCom to deliver double-digit revenue growth along with more than 200 basis points of annual margin expansion through 2028, resulting in an estimated earnings per share compound annual growth rate of approximately 25%.

Evercore pointed to several upcoming catalysts, including advancements related to automated delivery (AD), a favorable coverage decision in type 2 non-insulin-treated (T2 NIT) diabetes, and continued margin improvements.

The price target reflects a valuation of approximately 29.5x 2027 price-to-earnings and 19.8x EBITDA, with the firm expressing confidence in the company’s growth trajectory and operational leverage.