Stephanie Piazzola, an analyst from Bank of America Securities, reiterated the Buy rating on Irhythm Technologies. The associated price target was raised to $225.00.
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Stephanie Piazzola’s rating is based on several positive indicators for Irhythm Technologies. The company reported a strong third quarter with revenue exceeding expectations by $8 million, marking a 31% year-over-year growth. This growth was primarily driven by the Zio Monitor, with additional contributions from Zio AT and new channel partnerships. The company’s revenue guidance was increased, and the adjusted EBITDA margin surpassed expectations, indicating improved profitability.
Furthermore, the company is expected to achieve positive free cash flow by 2025, earlier than previously anticipated. The expansion of the total addressable market and the increasing number of innovative channel partner accounts, which grew from 12 to 18, also contribute to the optimistic outlook. These factors, combined with the company’s strong execution and improved financial metrics, underpin Piazzola’s Buy rating for Irhythm Technologies.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IRTC in relation to earlier this year.