DexCom Shares Rise as American Diabetes Association Recommends Continuous Glucose Monitors for Type 2 Diabetes Patients
DexCom Inc’s shares have surged more than 2% following the American Diabetes Association’s (ADA) updated guidelines, which recommend using continuous glucose monitors (CGMs) for some adults with type 2 diabetes who are not on insulin. The updated 2025 Standards of Care represent a faster-than-expected shift, signaling growing acceptance of CGM technology for broader use.
Analysts at Bank of America (BofA) maintained their “buy” rating on Dexcom and believe the move could pave the way for insurance coverage of the company’s non-insulin products, including Stelo and Lingo, which would unlock a significant new market. A BofA analyst noted that reimbursement has historically been the key catalyst for each CGM market.
The analysts also pointed to Dexcom’s upcoming G7 15-day sensor as a potential driver of earnings growth in 2025 and 2026. Furthermore, they believe the company’s current valuation does not fully reflect its growth prospects.
