UPDATE: Benchmark Initiates Coverage on DexCom on Upside From New G4 Platinum Sensor

In a report published Tuesday, Benchmark Company analyst Jan Wald initiated coverage on DexCom (NASDAQ: DXCM) with a Buy rating and $37.00 price target.

In the report, Benchmark Company noted, “We are initiating coverage of Dexcom with a Buy rating and a $37 price target, supported by the upside we see from the new G4 Platinum sensor for both margin expansion and greater market penetration. The new sensor has driven a marked increase in revenues and we expect that this growth will continue, though the rate will likely come down as we reach the fourth quarter and we anniversary the first full quarter of launch. We expect revenues to also be bolstered by greater sensor utilization, as it appears that patients are now replacing the sensors right away rather than waiting as they used to.”

DexCom closed on Monday at $29.04.