BofA Securities initiates coverage on iRhythm Technologies stock with Buy rating

Published 20/08/2025, 12:00
BofA Securities initiates coverage on iRhythm Technologies stock with Buy rating

Investing.com - BofA Securities initiated coverage on iRhythm Technologies (NASDAQ:IRTC) with a Buy rating and set a price target of $200.00 on Wednesday. The stock, currently trading at $158.52, has delivered impressive returns with a 126% gain over the past year and is trading near its 52-week high of $168.32. According to InvestingPro analysis, the stock appears overvalued at current levels.

The research firm views iRhythm as a company that is disrupting the standard of care in ambulatory cardiac monitoring with its Zio system, a wireless patch-based sensor for long-term continuous electrocardiogram monitoring to diagnose arrhythmias.

BofA Securities sees potential for iRhythm to gain market share in the mobile cardiac telemetry segment, particularly with the anticipated launch of Zio MCT in the second half of 2026.

The firm also notes that iRhythm is expanding its market reach by targeting primary care physicians and asymptomatic patients, creating additional growth opportunities.

BofA Securities expressed confidence in CEO Quentin Blackford’s track record of improving margin performance, citing a clear path for iRhythm to enhance its profitability.

In other recent news, iRhythm Technologies reported strong financial results for the second quarter of 2025. The company posted an adjusted net loss of $0.32 per share, which was better than the anticipated loss of $0.51 per share. Revenue reached $186.7 million, exceeding expectations and showing a 26.1% increase compared to the previous year. In another development, iRhythm was the subject of a short report by Spruce Point Capital Management. The report, titled "Investor Complacency is Off the Charts," suggested potential long-term downside for iRhythm shares, estimating a 40%-70% decrease to approximately $43-$94 per share. Spruce Point raised concerns about the company’s cardiac monitoring products and management credibility. These recent developments have put iRhythm under close observation by investors and analysts alike.

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