UPDATE: Canaccord Genuity Reinstates iRhythm Technologies (IRTC) at Buy

Canaccord Genuity analyst William Plovanic reinstates coverage on iRhythm Technologies (NASDAQ: IRTC) with a Buy rating and a price target of $125.00.

The analyst comments "We recently conducted a deep dive on iRhythm and are reinstating coverage with a BUY rating. We believe the current reimbursement challenges with CMS highlight limitations of CMS’s current methodology for establishing reimbursement for certain products and not the value that IRTC’s Zio brings to the patient, provider, and payor. Given the significant amount of published clinical data demonstrating the value of Zio (both healthcare outcomes and economics), combined with CMS’s active efforts to develop methodology to accurately account for Artificial Intelligence (AI) technology in healthcare in general, we believe it is merely a matter of time when (not if) CMS FFS reimbursement is increased to more reasonable levels for the new generation of Holter monitors, including IRTC's Zio. However, we do believe there could be future ASP risk associated with third-party commercial payors once CMS establishes national reimbursement levels (expected 2023) and have revised our model accordingly. We believe IRTC's recently hired CEO, Quentin Blackford, brings both experience and resources to frame a solution for CMS reimbursement, having faced payor challenges at prior companies. Lastly, we believe the company’s collaboration with Verily for a wearable device provides upside potential to current expectations and look forward to the limited market release in 2022. We also note that IRTC is a leader in the ambulatory cardiac monitoring space and has value being one of the few pure-play companies remaining after numerous acquisitions in the field by strategics. We reinstate our BUY rating and set our 12-month price target at $125."

For an analyst ratings summary and ratings history on iRhythm Technologies click here. For more ratings news on iRhythm Technologies click here.

Shares of iRhythm Technologies closed at $108.34 yesterday.

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