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On Friday, Truist Securities analyst Richard Newitter increased the price target for iRhythm Technologies (NASDAQ:IRTC) to $145 from the previous $111, while sustaining a Buy rating for the stock. The stock is currently trading near its 52-week high of $124.11, having surged an impressive 59.43% over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value. Newitter highlighted iRhythm’s fourth-quarter revenue outperformance, accompanied by an EBITDA/EPS beat. The company’s strong performance is reflected in its 20.13% revenue growth over the last twelve months, with a robust gross margin of 68.86%. The company reiterated its revenue growth guidance for 2025, projecting a 16-18% increase, which factors in significant volume growth in the U.S., albeit tempered by a low single-digit pricing headwind. InvestingPro subscribers can access 8 additional key insights about IRTC’s financial health and growth prospects. The gross margin outlook for the year is expected to remain roughly flat compared to the previous year, considering a possible impact of approximately 50-75 basis points from tariffs.
The analyst noted that iRhythm traditionally offers conservative guidance and suggested that there might be potential for exceeding these projections. He pointed out that the company’s regulatory remediation efforts are progressing as planned, with no recent updates to report. Additionally, the anticipated submission of the MCT (Mobile Cardiac Telemetry) device to the FDA in the third quarter of 2025 was mentioned as a positive development. Progress in international markets and in the value-based care channel were also recognized as indicators of a strong quarter for iRhythm, supporting the analyst’s view that the stock has room to grow towards the newly established $145 price target.
In other recent news, iRhythm Technologies reported strong fourth-quarter financial results, surpassing Wall Street expectations. The company posted earnings per share of $0.01, a significant improvement over the anticipated loss of $0.35 per share. Revenue for the quarter reached $164.3 million, exceeding the consensus estimate of $157.12 million and marking a 24% increase from the previous year. Analysts have responded positively, with JPMorgan, Needham, BTIG, and Citi all raising their price targets while maintaining favorable ratings. iRhythm’s guidance for 2025 projects revenue between $675 million and $685 million, aligning with analyst expectations. The company has also introduced adjusted EBITDA guidance of 7-8% of sales, reflecting its strategic focus on operational efficiencies. iRhythm’s growth is supported by robust sales volumes in the U.S. and promising international expansion efforts. The company is also addressing regulatory challenges, with plans to resolve outstanding issues by mid-2025. Analysts remain optimistic about iRhythm’s growth trajectory, citing strong momentum and strategic initiatives.
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