BTIG ups iRhythm Technologies to buy; PT $80


BTIG upgraded iRhythm Technologies (NASDAQ:IRTC) to “buy” with an $80 price target, citing a drastic pullback in the stock that “opens a window of opportunity.” The stock closed at $69.34 on April 2.

“For a long time, we’ve felt iRhythm is the dominant player in the patch electrocardiogram space,” writes analyst Dr. Sean Lavin. “We also believe there are many underfunded competitors who could become more meaningful and there is a slight risk around reimbursement.” In addition, he said that as the stock neared $100 and well over 10 times forward revenue, they had become lofty with some risk.

“Recently, multiple short attacks (much of which we do not agree with and some of which we believe is being taken out of context) have caused shares to retreat from the $90s into the $60s,” he added.

“Here, we feel the benefits outweigh the risks. We feel one is getting a near 40% grower inexpensively now and that the potential competitive and reimbursement risks do not warrant staying on the sidelines,” he said.

Dr. Lavin said the shares now trade at seven times his next 12 months sales estimate, “which is unheard of for this level of growth.”

Stephen Kilmer