BofA says use DexCom’s stock move as buying opportunity

DexCom (DXCM) shares are down on Monday morning on a notification that some customers are receiving 30 days of supplies instead of 90 days amid inventory constraints, with the company saying it is experiencing temporary delays in its supply chain, which may lead to some pharmacies or durable medical equipment distributors being on backorder, BofA analyst Travis Steed tells investors. The company believes most of these backorders will be addressed within 5-7 days, BofA notes, adding that the supply issue is temporary, and is the result of the inventory spoilage that happened in Q4, which DexCom previously spoke about. BofA, which has a Buy rating and $90 price target on the shares, would use the stock move as a buying opportunity, as it does not see the news having an impact on full year estimates and thinks DexCom’s 15-day product could be approved in the near-term.