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DexCom Long-Range Plan Establishes Respectable Base Case, RBC Says

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DexCom's (DXCM) long-range plan establishes a respectable base case, but significant total addressable market expansion opportunities could allow the company to notably exceed those targets, RBC Capital Markets said.

The company's strategic priorities include remaining the premier glucose sensor for diabetics, setting the standard for customer experience in glucose biosensing, and growing international market share, according to the note Friday.

DexCom is targeting over 10% revenue growth annually through 2030, gross margins of 67% to 69%, operating margins of 29% to 30%, adjusted EBITDA margins of 36% to 37%, and free cash flow conversion of 80% to 100% with a commitment toward share repurchases. RBC believes the LRP is conservative and positions the company for potential upside ahead, according to the note.

RBC expects 2026 revenue of $5.22 billion, gross margins of 63.5%, operating margins of 23.3% and an EPS of $2.56, all within the company's guidance range. It models 2027 revenue and EPS growth of about 11.9% and 18.2%, respectively.

RBC kept an outperform rating on DexCom with a price target of $85.

Shares of DexCom rose by nearly 7% in Friday trading.

Price: $61.70, Change: $+3.88, Percent Change: +6.71%

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