CMS Publishes CY27 Physician Fee Schedule Proposal; Payment Rates for Long-Term Monitoring and Mobile Cardiac Telemetry Get LSD Boost

研报英文原文证据摘录

CMS Publishes CY27 Physician Fee Schedule Proposal; Payment Rates for Long-Term Monitoring and Mobile Cardiac Telemetry Get LSD Boost

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, Zio MCT, the asymptomatic afib patient population, and international expansion.MEDICAL

Upcoming Catalysts Price Performance

■ Expansion in the PCP channel $200

■ Updates on the Zio MCT regulatory process $180

■ Resolution of the FDA warning letter and Form 483 observationsTECHNOLOGY $160 ■ Updates on international expansion and asymptomatic afib market opportunity

AND ■ 1H27: Zio MCT and next-gen algorithm launch $140$120

Base Case Assumptions: $185 Price Target $100

■ Continued stable volume growth in core market and LSD pricing declines $80

■ Gradual expansion in the PCP channel Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 ■ FDA approval and release of Zio MCT during 1H 2027DIGITAL IRTC

■ Warning letter resolution timeline stays on track and eventual resolution of the S&P 500 (rebased)

Form 483 observations without further escalation 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