DexCom’s Stelo cost came in a bit higher than expected, says Piper Sandler

Piper Sandler analyst Matt O’Brien reiterated an Overweight rating and $90 price target on DexCom after the company announced that Stelo, its over-the-counter glucose sensor, is now available for purchase without a subscription in the U.S. While the end market is undeniably large, the cost of the sensor, which is $99 for one month pay-as-you-go or $89 pre month when subscribed, came in a bit higher than the firm’s initial expectations, the analyst tells investors in a research note. The firm noted that cost is very important to both diabetes clinicians and patients, but DexCom management has indicated that it expected to price the product at an appropriate level.