Piper Jaffray Highlights DXCM's Early Continuous Glucose Management Data

Piper Jaffray is maintaining its Overweight rating and its $20 price target on DexCom Inc. (NASDAQ: DXCM) following the company's early positive results in its CGM data.

According to Piper Jaffray, “We are beginning to see early signs of positive clinical data on use of continuous glucose management (CGM) in Type II diabetics – a large and untapped market. The longer term opportunity to address even a small percentage of the Type II market could significantly increase the revenue potential. But timing for reimbursement is likely to be extended. We believe significant financial impact could take 2-4 years, with our bias being toward the longer end. On the recent equity financing (the third time in the last six quarters), the Company will almost triple its cash and investment on hand (from $37M to ~$107M) while adding 7.5% to the shares outstanding.”

DXCM closed yesterday at $14.98.