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Investing.com - Freedom Capital Markets raised its price target on iRhythm Technologies (NASDAQ:IRTC) to $220.00 from $205.00 on Thursday, while maintaining a Buy rating following the company’s third-quarter results. The new target represents a potential 19% upside from the current price of $184.12, with IRTC shares already trading near their 52-week high of $190.86.
The medical technology company beat expectations across all metrics in its quarterly report, continuing a pattern of strength in its core business of Zio monitors while generating record volumes of Zio AT tests for continuous transmission. InvestingPro data shows iRhythm has maintained impressive 22.4% revenue growth over the last twelve months, with a healthy gross profit margin of 69.8%.
Freedom Capital Markets noted that larger accounts are increasingly adopting both Zio XT and AT products, supported by the company’s channel partners, electronic health record integration, and ongoing clinical validation efforts.
Management raised its full-year guidance for both revenue and EBITDA for the third time this year, prompting the analyst firm to increase its estimates for the company. Despite this positive outlook, InvestingPro analysis indicates the company is currently trading above its Fair Value, though it maintains strong financial health with liquid assets exceeding short-term obligations by 5x.
Freedom Capital Markets had only recently initiated coverage of iRhythm earlier in October with a $205 price target before this latest increase to $220. The stock has delivered remarkable returns with a 154% gain over the past year and 104% year-to-date, making it one of the 1,400+ US equities featured in comprehensive Pro Research Reports available on InvestingPro.
In other recent news, iRhythm Technologies reported impressive third-quarter earnings, surpassing analyst expectations with adjusted earnings per share of $0.06, compared to an estimated loss of $0.32. The company achieved a revenue of $192.9 million, marking a 30.7% increase year-over-year and exceeding consensus estimates by approximately $8 million. This strong performance led management to raise its 2025 revenue guidance. Following these results, several analyst firms adjusted their outlooks for the company. Needham raised its price target for iRhythm Technologies to $244 from $193, maintaining a Buy rating, while BTIG increased its target to $215 from $195, also keeping a Buy rating. Canaccord Genuity joined in by lifting its price target to $212 from $193, continuing with a Buy rating. The company attributed its strong revenue growth to record quarters for its Zio Monitor and Zio AT products, driven by expansion in the PCP channel and better integration into electronic health records. These developments reflect positive momentum for iRhythm Technologies in the digital healthcare sector.
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