PHG - iRhythm ends flat after back-to-back deals in cardiac monitoring space
iRhythm Technologies (IRTC) fell ~6.2% yesterday after the market for cardiac monitoring witnesses its latest deal when Boston Scientific (BSX) agreed to acquire Preventice Solutions for an upfront cash payment of $925M.As analysts sized up its impact on the market leader, iRhythm, the company shares closed marginally up today with a gain of ~0.3%. In the fast-growing industry, Boston Scientific-Preventice deal is the third since December.On Tuesday, Hillrom (NYSE:HRC) entered an agreement to acquire Bardy Diagnostics for a cash consideration of $375M. In December, Philips (PHG) agreed to acquire BioTelemetry (BEAT) for $2.8B.Issuing a neutral rating on iRhythm Baird analyst Mike Polark pointed to 30% consensus growth attributed to the company, whereas BSX projected only “>10%” of market CAGR through 2026.‘BSX is getting quite a good deal here,’ the analyst wrote, citing the full payout multiple of 8x of 2020 revenue indicated in the deal. Meanwhile, iRhythm is trading at forward ~27.7x in terms of 2020 revenue.However, arguing that
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iRhythm ends flat after back-to-back deals in cardiac monitoring space