Irhythm Technologies: Durable Growth, Margin Expansion, and Beat-and-Raise Potential Support Buy Rating

In a report released yesterday, David Saxon from Needham maintained a Buy rating on Irhythm Technologies, with a price target of $244.00.

David Saxon has given his Buy rating due to a combination of factors tied to Irhythm Technologies’ solid near‑term performance and improved outlook. The company’s updated 2025 revenue outlook now exceeds the upper end of prior guidance, implying fourth quarter revenue ahead of market expectations and record procedure volumes, along with free‑cash‑flow profitability for the full year. For 2026, Irhythm’s revenue and EBITDA margin guidance both come in above or at least in line with consensus, supporting a healthy 17–18% growth profile and reinforcing confidence in the company’s operating leverage.

Saxon also highlights management’s disciplined approach to forecasting and the company’s strong track record of execution in key markets as reasons to anticipate continued outperformance versus guidance. He sees multiple growth drivers that could sustain a beat‑and‑raise trajectory, including deeper penetration into the primary care and innovative care channels, increasing momentum in mobile cardiac telemetry with the planned Zio MCT launch in the second half of 2026, and early progress in adjacent areas such as sleep monitoring pilots. Collectively, these elements underpin his view that Irhythm is well positioned for durable growth and margin expansion, supporting a Buy recommendation on the stock.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IRTC in relation to earlier this year.