Goldman Sachs Initiates Coverage of DexCom (DXCM) With Buy Rating

On May 29, Goldman Sachs analyst David Roman initiated coverage DexCom Inc. (NASDAQ:DXCM) with a Buy rating and a price target of $104.

The initiation is part of Goldman Sachs’s broader coverage launch on Diabetes Medical Technology, a space the firm believes is poised for double-digit growth.

DexCom, a global leader in glucose biosensing systems, stands out for its innovative continuous glucose monitoring (CGM) technology. Roman sees further upside potential in the stock, underpinned by increasing consumer adoption of DexCom’s CGM products and strengthening operating leverage. He expects these factors to become more evident over the remainder of 2025 as the company continues to scale.

A doctor demonstrating how to use the medical device to a patient with diabetes.

DexCom has guided to 2025 revenue of $4.6 billion, reflecting approximately 14% year-over-year growth. The company also anticipates maintaining strong profitability, with an adjusted gross margin of around 62% and an adjusted EBITDA margin of around 30%, reinforcing its ability to generate solid cash flow.

Roman also notes that improving gross margins could help the company achieve profitability above current consensus expectations, leading to his positive stance.

The recent launch of Dexcom’s G7 15-Day CGM and the Stelo platform positions the company to capture additional market share in the expanding CGM space.

While we acknowledge the potential of DXCM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DXCM and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.