UPDATE: JPMorgan Upgrades iRhythm Technologies (IRTC) to Overweight

JPMorgan analyst Robbie Marcus upgraded iRhythm Technologies (NASDAQ: IRTC) from Neutral to Overweight with a price target of $116.00 (from $100.00).

The analyst comments "It’s not the cleanest story in SMid-cap MedTech, but the risk-reward looks favorable enough for us to upgrade iRhythm to Overweight from Neutral. Even though the reimbursement situation has yet to be fully resolved, we think recent updates have narrowed the range of outcomes enough to give investors sufficient confidence to revisit the name and begin diving into core business trends. We think there’s a lot to be bullish on under the hood: (1) we’ve seen the company hold up much better than its SMid-cap peers during COVID-19, a key differentiator as Omicron fears add on to existing disruption from Delta; (2) a new CEO story with a proven operator, with Quentin expected to provide a clear direction for the strategy on both (a) untapped growth opportunities and (b) the path to profitability with or without a favorable reimbursement outcome; all coupled with (3) continued strength in the domestic symptomatic AF market. With a reasonable valuation relative to other high-growth peers, a solid setup for the company to execute in 2022+, and meaningful growth opportunities that represent upside to today’s numbers, we are increasing our December 2022 price target to $116 (from $100), or 9.0x 2023E EV/sales."

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 $99.97 yesterday.

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