IRTC - iRhythm is a new Outperform at Baird despite FDA warning letter
2023-07-19 12:26:34 ET
Shares of iRhythm Technologies ( NASDAQ: IRTC ) traded higher on Wednesday after Baird launched its coverage with an Outperform rating and a $130 per share target, ruling out concerns related to a FDA warning letter slapped on the company, recently.
The warning linked to the company’s Zio AT cardiac monitor led to a multi-day selloff in iRhythm ( IRTC ) shares in late May, and Baird analyst David Rescott argues that the issue could be resolved and the product will not be pulled from the market.
With a ~25% share currently, IRTC’s ZioService is on track to become the standard of care in the U.S. market for ambulatory cardiac monitoring, which is estimated at ~6M annual tests, Rescott projects.
He expects iRhythm ( IRTC ) to achieve a high-teens to 20% growth outlook over the next five years thanks to new customers, international expansion, and an established Medicare reimbursement code.
Baird’s forecasts suggest that the company’s international business could make up ~8% of its topline by 2027, up from ~3%, implying a compound annual growth rate of over 50%.
More on iRhythm
- iRhythm Technologies: Unpacking The FDA Warning Letter
- iRhythm: Revolutionizing Arrhythmia Detection With AI And Machine Learning
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iRhythm is a new Outperform at Baird despite FDA warning letter