Dexcom shares up as Diabetes Association updates guidelines

Investing.com -- DexCom Inc (NASDAQ:DXCM ) shares up more than 2% following updated guidelines by the American Diabetes Association (ADA), which now recommend using continuous glucose monitors (CGMs) for some adults with type 2 diabetes who are not on insulin.

Bank of America maintained its "buy" rating on Dexcom.

The updated 2025 Standards of Care represent a faster-than-expected shift, signaling growing acceptance of CGM technology for broader use. Analysts at BofA said the move could pave the way for insurance coverage of Dexcom’s non-insulin products, including Stelo and Lingo, which would unlock a significant new market.

“This is an important step for reimbursement. Reimbursement has historically been the key catalyst for each CGM market,” BofA analyst wrote.

BofA also pointed to Dexcom's upcoming G7 15-day sensor as a potential driver of earnings growth in 2025 and 2026, adding that the company's current valuation does not fully reflect its growth prospects.

Source: Investing.com