Market Overview

Here's Every Sell-Side Rating Following iRhythm's IPO Quiet Period Expiration

Here's Every Sell-Side Rating Following iRhythm's IPO Quiet Period Expiration

The quiet period surrounding Irhythm Technologies Inc (NASDAQ: IRTC)'s stock has now ended after its fantastic IPO debut, so research firms are free to now evaluate the stock and issue their opinions.

Here is a summary of some of the research reports, which were made available for the first time on Monday.

Canaccord: Buy Rating, $31 Price Target

Jason Mills of Canaccord Genuity initiated coverage of iRhythm with a Buy rating and $31 price target.

According to Mills, the company could see material upside potential as the company will continue shifting itself from "analog to digital" in ambulatory electrocardiography (ECG) monitoring. Moreover, the company's ZIO XT wearable biosensor is able to record and store up to two weeks' worth of continuous data which is notably longer than Holter monitors and more cost effective.

Finally, iRhythm is merely in the very early stages of targeting the ECG total addressable market given its scant 4 percent market share in a market that stands at more than 4.6 million users.

BTIG: Buy Rating, $28 Price Target

Sean Lavin of BTIG initiated coverage of iRhythm with a Buy rating and $28 price target.

According to Lavin, the thesis on the stock is quite simple: The company's combination of improved diagnostic yield, convenient wearable devices and a "soups to nuts" offering to physicians and payers is a very attractive profile.

Lavin added that the ZIO system could replace bulky, less reliable first-line diagnostics and also offer a better proposition for consumers within the cardiac monitoring market.

Over the near term, the company's salesforce ramp should generate above-average revenue growth and over the longer-term the company will benefit from product iterations, new indications and OUS expansion.

Morgan Stanley: Overweight Rating, $28 Price Target

David Lewis of Morgan Stanley initiated coverage of iRhythm with an Overweight rating and $28 price target.

According to Lewis, the company is a "disruptive" player within the $1.4 billion market for ambulatory ECG monitoring. Similar to his peers, Lewis also believes that the ZIO monitoring service is superior to the competition.

In fact, Lewis stated that studies show that ZIO provides a 57 percent improvement in diagnostic yield and 90 percent of physicians who use the ZIO believe it delivered a definitive diagnosis.

Lewis also stated that the company could boost its market share to around 7 percent of the existing 4.6 million ECG procedures, which represents an improvement from 5 percent at the end of the year. Overall penetration is expected to reach 9 percent by 2021 which will deliver $203 million in sales.

Elsewhere On The Street

Analysts at JPMorgan initiated coverage of iRhythm with an Overweight rating.

At last check, iRhythm shares were up 2.64 percent at $24.87.

Latest Ratings for IRTC

Jan 2020SunTrust Robinson HumphreyInitiates Coverage OnBuy
Dec 2019Morgan StanleyMaintainsOverweight
Apr 2019BTIG ResearchUpgradesNeutralBuy

View More Analyst Ratings for IRTC
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Health Care Initiation IPOs Analyst Ratings Movers Best of Benzinga


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