Piper Jaffray Reiterating Overweight On DexCom (DXCM)

Piper Jaffray is reiterating its Overweight rating on shares of DexCom, Inc. DXCM and $16 price target.

In a note to clients, Piper Jaffray writes, "DXCM Q4 product revenues of $13.6M, in line with the January pre-release, were
up 26% sequentially. Total revenue of $15.6M compared to our estimate of $15.5M and consensus of $14.7M. Loss per share of ($0.16) compared to our ($0.18) with R&D higher and SG&A lower than our estimates. Management's guidance for 2011
product revenue of $67.5 million to $72.5 million was unchanged. That the FDA is slowing new products is old news, but the level of science silliness still confounds. Importantly, demand for DXCM's current CGM platform remains strong, reimbursement is improving, and embryonic gross margin is emerging. We maintain our Overweight and $16 price target."

Shares of DXCM gained 24 cents yesterday to close at $14.58, a gain of 1.67%.