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On Friday, Canaccord Genuity adjusted its price target for iRhythm Technologies stock, traded on (NASDAQ:IRTC), to $139 from the previous target of $152, while maintaining a Buy rating on the company’s shares. Currently trading at $108.59 with a market capitalization of $3.47 billion, the adjustment followed iRhythm’s first-quarter revenue report, which revealed a 20.3% year-over-year increase to $158.7 million, surpassing both Canaccord’s estimate of $152.6 million and the consensus estimate of $153.4 million.
iRhythm also exceeded expectations with its adjusted EBITDA, reporting a loss of $2.6 million, which was more favorable than Canaccord’s anticipated loss of $6.3 million. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 5.82, indicating robust financial health despite an LTM EBITDA of -$65.61 million. Additionally, the company has raised its revenue and profitability outlook for the fiscal year 2025. This upward revision includes an approximately $5 million increase due to the first-quarter performance and an expected incremental revenue of about $10 million, bolstered by strong trends, particularly in the Zio AT business.
The company remains on track with its regulatory goals, including the anticipated submission of the Zio Monitor in the third quarter and the completion of compliance efforts related to a Warning Letter and 483 observations by the end of 2025. iRhythm has also initiated its commercial launch in Japan, where reimbursement rates are currently equivalent to traditional Holter monitor rates.
iRhythm’s innovative health channel partnerships continue to expand, and its penetration into primary care has grown significantly, now representing nearly 33% of the company’s monitoring volume, a notable increase from the low 20% range a year ago. The Zio AT product, in particular, has been a strong contributor to the company’s performance, driving most of the first-quarter revenue beat and the raised guidance. It has helped iRhythm retain accounts won during the competitive disruption in the fourth quarter of 2024 and continues to aid in gaining further market share.
In light of these developments, Canaccord reaffirmed its Buy rating for iRhythm but revised the price target to $139, citing a compression of the underlying comparable group as the reason for the adjustment. The stock has shown remarkable momentum with a 44.71% return over the past six months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. For deeper insights into iRhythm’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 7 additional key ProTips for this stock.
In other recent news, iRhythm Technologies reported a robust financial performance for the first quarter of 2025, with revenues reaching $158.7 million, surpassing the consensus estimate of $153.4 million. This represents a 20% year-over-year increase, driven largely by the strong performance of their Zio AT product. Additionally, the company posted an adjusted net loss of $0.95 per share, slightly better than the forecasted $0.96 per share. Following these results, iRhythm raised its full-year 2025 revenue guidance to between $690 million and $700 million. Analyst Marie Thibault from BTIG responded by raising the company’s stock price target to $140, maintaining a Buy rating. The company also highlighted its ongoing efforts to address an FDA warning letter, with remediation expected to be completed by mid-2025. Furthermore, iRhythm is preparing to submit its new Zio MCT product to the FDA in the third quarter of 2025. These developments reflect iRhythm’s strategic focus on innovation and market expansion, positioning the company for continued growth.
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