Market Overview

IRhythm Technologies Is Breaking Ground In Cardiac Monitoring, Says New Sell-Side Bull

IRhythm Technologies Is Breaking Ground In Cardiac Monitoring, Says New Sell-Side Bull
IRhythm Still Kicking After Shock Of Apple Competition
Benzinga's Top Upgrades, Downgrades For September 6, 2018
iRhythm Technologies: Inferior Product Line And Managerial Inefficiency Preclude Profitability (Seeking Alpha)

Medtech name IRhythm Technologies Inc (NASDAQ: IRTC) is redefining how cardiac arrhythmias are monitored, which makes the stock an attractive buy, according to BMO Capital Markets. 

The Analyst

BMO analyst Joanne Wuensch initiated coverage of iRhythm Technologies' stock with an Outperform rating and $76 price target.

The Thesis

IRhythm's core wireless ZIO XT stands out from competing products and is a differentiated platform for four key reasons, Wuensch said in the initiation note:

  • The wearable ZIO Patch bionsensor records and stores ECG data from every heartbeat for up to 14 days.
  • The company's cloud-based analysis of cardiac rhythms is combined with a proprietary algorithm.
  • A final quality assessment review of the data is included.
  • A report is sent directly to the patient's physician and is integrated into an electronic health record.

IRhythm should be able to grow its full 2018 revenue by 32.9 percent over the prior year to $130.9 million, Wuensch said. In 2019, revenue should grow another 35.1 percent and then 29.4 percent in 2020, yielding a compounded annual growth rate of 37.5 percent through 2020, the analyst said.

An expansion of the company's sales force from 86 people to as many as 112 makes the revenue momentum possible, she said. 

IRhythm boasts a superior revenue growth rate versus the peer group's 20 percent, and it faces a very large and mostly underpenetrated market opportunity in arrhythmia monitoring, according to BMO. 

Price Action

Shares of iRhythm Technologies were trading higher by 0.53 percent midday Tuesday. 

Related Links:

JPMorgan Diagnoses The MedTech Space: Stock Picks And Pans

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

Latest Ratings for IRTC

Jan 2019Canaccord GenuityMaintainsBuyBuy
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Sep 2018Canaccord GenuityMaintainsBuyBuy

View More Analyst Ratings for IRTC
View the Latest Analyst Ratings

Posted-In: BMO Capital Markets CardiacAnalyst Color Health Care Price Target Initiation Analyst Ratings General Best of Benzinga


Related Articles (IRTC)

View Comments and Join the Discussion!

Latest Ratings

EMNMorgan StanleyUpgrades90.0
DERMRaymond JamesUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Amid Fragmented Pizza Market, Domino's Still Has Room To Grow

BofA Takes Neutral Stance On Cardlytics, Cites Scaling Concerns