Strong Commercial Momentum and Strategic Partnerships Drive Buy Rating for Irhythm Technologies

William Blair analyst Margaret Kaczor has maintained their bullish stance on IRTC stock, giving a Buy rating today.

Margaret Kaczor’s rating is based on the strong commercial momentum Irhythm Technologies is experiencing, particularly with its Zio AT product. The company has seen record revenue contributions from Zio AT and has formed new value-based channel partnerships, which are driving sales above expectations. Additionally, the execution in the primary care physician channel and increased volumes in the U.K. have contributed to the positive outlook.
Management’s decision to raise full-year guidance by $15 million further supports the Buy rating, as it reflects confidence in the company’s growth trajectory. Despite being cautious about the variability in prescribing patterns from larger accounts, the near-completion of regulatory remediation efforts and upcoming catalysts over the next year bolster the belief in improving fundamentals. The ongoing development of the Zio platform, international expansion, and the launch of the next-generation Zio monitor are expected to expand the total addressable market, providing valuation upside.

In another report released today, Wells Fargo also upgraded the stock to a Buy with a $130.00 price target.

Based on the recent corporate insider activity of 38 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.