Wells upgrades iRhythm to Overweight on strong business trends

Wells Fargo upgraded iRhythm (IRTC) to Overweight from Equal Weight with a price target of $130, up from $104. The firm says strong trends in iRhythm’s underlying business support upside to the company’s raised guidance. iRhythm remains confident in its regulatory remediation plan and that the Zio MCT path to approval should not be impacted, the analyst tells investors in a research note. Wells believes the record new account openings in prior quarters, strong Zio AT unit volume growth that mangement believes is durable, good progress with value-based care accounts, and “healthy” order trends among Epic Aura accounts support upside to iRhythm’s guidance in 2025.