IRTC - iRhythm rated Hold at Needham citing reimbursement uncertainty

Expecting a mid-teens revenue headwind in 2021, Needham reiterates its Hold rating on iRhythm Technologies (IRTC) as the company shares remain under pressure after Medicare Administrative Contractor Novitas Solutions published rates that appeared to be ‘really low’ according to Baird.Needham’s price target for iRhythm is at ~$121, nearly a half of the previous close as the analysts argue that ‘reimbursement uncertainty could remain an overhang for IRTC in the near-term.’With a prediction that the contracted payors could attempt to renegotiate, the ‘majority of IRTC's volumes are through its Houston independent diagnostic testing facility (“IDTF”) and covered by Novitas’ the note points out.However, citing the M&A activity in the space, the analysts argue following today’s pullback, the stock ‘could be an attractive acquisition target.’Last week, the market for cardiac monitoring witnessed back-to-back deals, sending iRhythm shares ~6.2% lower.

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iRhythm rated Hold at Needham citing reimbursement uncertainty