iRhythm should be bought on subpoena weakness, says William Blair

William Blair analyst Brandon Vazquez says shares of iRhythm (IRTC) are trading off 6% after the company disclosed it received a civil investigative demand from the Department of Justice in December. Management confirmed the demand is part of the previously disclosed 2023 subpoena and that iRhythm continues to cooperate fully, the analyst tells investors in a research note. “The fact that this is part of the original subpoena and not a new investigation is an important point,” contends Blair. Management indicated the scope of the information the DOJ is asking for is similar to what has been asked for from the original subpoena, the firm adds. William Blair would buy the stock on weakness and keeps an Outperform rating on iRhythm.