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Investing.com - Freedom Capital Markets initiated coverage on iRhythm Technologies (NASDAQ:IRTC), currently valued at $5.7 billion, with a Buy rating and a price target of $205.00 on Monday.
The research firm cited iRhythm’s Zio Monitor as a "category killer" that has established market leadership in long-term cardiac monitoring with a 70% market share, effectively disrupting traditional 48-hour Holter monitors.
Freedom Capital Markets noted that iRhythm also holds 12% market share in continuous monitoring with its Zio AT product, which patients can wear for up to 14 days, and expects share improvements with the upcoming launch of a 21-day device.
The firm highlighted that iRhythm has exceeded expectations and raised guidance in the last two quarters as the company has secured larger accounts and expanded its sales channels to the primary care market.
The $205 price target represents approximately mid-teens percentage upside potential and is based on 8 times Freedom Capital Markets’ fiscal year 2026 revenue estimate of $850 million for iRhythm Technologies.
In other recent news, iRhythm Technologies reported better-than-expected earnings for the second quarter of 2025. The company achieved a narrower adjusted net loss of $0.32 per share, outperforming the anticipated $0.51 loss. Revenue also exceeded expectations, reaching $186.7 million, which marks a 26.1% increase from the previous year. Canaccord Genuity raised its price target for iRhythm Technologies to $193, citing higher revenue expectations and an increase in the mean comparison group multiple. Evercore ISI initiated coverage with an In Line rating and a price target of $185, highlighting strong execution by new management and predicting consistent mid-teens topline growth over the next five years. BofA Securities also initiated coverage with a Buy rating and set a price target of $200, noting the company’s disruptive Zio system. Meanwhile, Spruce Point Capital Management issued a short report estimating a potential long-term downside for iRhythm shares, citing concerns about its cardiac monitoring products and management credibility.
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