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On Monday, Truist Securities increased the price target for iRhythm Technologies (NASDAQ:IRTC) to $145 from the previous target of $111, while retaining a Buy rating on the stock. The adjustment follows iRhythm’s fourth-quarter revenue outperformance and a beat on both EBITDA and EPS. According to InvestingPro data, the company has demonstrated strong momentum with a 70.6% price return over the past six months, though current analysis suggests the stock is trading above its Fair Value. Analysts at Truist highlighted that the company’s reiterated revenue growth guidance for 2025, which anticipates a 16-18% increase, is expected to be driven by significant volume growth in the U.S. market. This growth projection is set against the backdrop of a low single-digit pricing headwind.
The company’s gross margin outlook for the coming year is projected to remain roughly flat year-over-year, following a robust 68.9% gross margin in the last twelve months. This forecast includes the potential impact of tariffs, estimated to affect margins by approximately 50-75 basis points. Despite these factors, Truist Securities noted that iRhythm Technologies typically provides conservative guidance and that there is potential for performance to exceed these projections. InvestingPro analysis reveals the company maintains a healthy current ratio of 5.82, indicating strong short-term financial stability.Want deeper insights? InvestingPro offers exclusive access to 10+ additional ProTips and a comprehensive Pro Research Report for IRTC, helping you make more informed investment decisions.
iRhythm Technologies is on track with its regulatory remediation efforts, and there have been no new developments that would alter this course. Additionally, the company is preparing for an FDA submission for its MCT device in the third quarter of 2025. Progress is also being made internationally and in the value-based care channel, contributing to the positive outlook.
Truist Securities sees the recent quarter as solid for iRhythm Technologies and believes there is room for the stock to continue its ascent towards the newly established $145 price target. The affirmation of the Buy rating reflects confidence in the company’s trajectory and its potential to outperform the conservative guidance it has put forward. InvestingPro data shows the company achieved 20.1% revenue growth in the last twelve months, though analysts have recently revised their earnings expectations downward for the upcoming period.
In other recent news, iRhythm Technologies reported robust fourth-quarter earnings, with revenue reaching $164.3 million, surpassing the consensus estimate of $157.12 million and marking a 24% increase from the previous year. The company’s earnings per share (EPS) were $0.01, significantly outperforming the expected $0.35 loss per share. iRhythm has reiterated its revenue guidance for 2025, projecting between $675-685 million, which aligns with the consensus estimate of $679.4 million. Analysts from firms such as Truist Securities, JPMorgan, and BTIG have responded positively, raising their price targets to $145, $145, and $135, respectively, while maintaining Buy or Overweight ratings.
Truist Securities and JPMorgan highlighted iRhythm’s strong performance and conservative outlook, suggesting potential for future outperformance. Needham also increased its price target to $138, noting the company’s growth in U.S. sales volumes and its international market expansion. BTIG pointed out iRhythm’s improved gross margins and controlled operating expenses, which led to an adjusted EBITDA exceeding expectations. The company continues to address regulatory challenges and plans to submit its Mobile Cardiac Telemetry (MCT) device to the FDA by the third quarter of 2025.
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