Ahead of Management Meetings, Our Thoughts on IRTC and What's Next for the Company

研报英文原文证据摘录

Ahead of Management Meetings, Our Thoughts on IRTC and What's Next for the Company

Investment Thesis

Our iRhythm Technologies rating is Buy. Our $185 PT is based on ~6x our projected 12-24 month revenue estimate. The company's

fundamentals appear healthy and volume has consistently remained strong. We see several future drivers for long-term growth,

including the PCP channel, the asymptomatic afib patient population, and international expansion.MEDICAL

Upcoming Catalysts Price Performance

■ Expansion in the PCP channel $200

■ Resolution of the FDA warning letter and Form 483 observations $190

$180 ■ Updates on international expansion and asymptomatic afib market opportunity $170TECHNOLOGY ■ 1H27: Zio MCT and next-gen algorithm launch $160

$150

$140AND $130

Base Case Assumptions: $185 Price Target $120

$110

■ Continued stable volume growth in core market and LSD pricing declines $100

■ Gradual expansion in the PCP channel Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 ■ Warning letter resolution timeline stays on track and eventual resolution of theDIGITAL IRTC

Form 483 observations without further escalation S&P 500 (rebased)

Source: FactSet

Company DescriptionHEALTH Upside Scenario

■ Accelerated volume growth in core market and stable pricing iRhythm Corporation manufactures the

■ Fast expansion in the PCP channel ZIO patch, which is a 14-day ECG patch

■ Warning letter resolution timeline accelerated sensor. The company also offers a patch

■ Quick resolution of the Form 483 observations without further escalation monitoring device called ZIO AT, whichEQUITY

■ Greater operating expense leverage adds real-time functionality.

Downside Scenario

■ Slowdown in volume growth and more pronounced pricing declines