UPDATE: Wunderlich Securities Downgrades DexCom to Hold, Reiterates $20 PT on Valuation

In a report published Monday, Wunderlich Securities analyst Greg Simpson downgraded the rating on

from Buy to Hold, but reiterated the $20.00 price target. In the report, Wunderlich Securities noted, “We are downgrading the shares of DexCom (DXCM) to Hold from Buy, as the shares have exceeded our $20 price target. We are also removing the shares from the Wunderlich Best Ideas List. DXCM shares have been very strong this year, up 65% on a year-to-date basis. We remain very positive on the prospects for DXCM, and continue to view CGM technology as the key ‘gateway' technology to further advancement in diabetes treatment. Having raised our price target twice already in 2013, the current valuation is stretched, in our opinion, and, absent a takeover, the near/intermediate-term upside on the shares is somewhat limited. Bottom line, DXCM remains one of our favorite names in all of MedTech, but the current valuation limits our enthusiasm for the stock at this point.” DexCom closed on Friday at $22.40.