iRhythm Technologies (IRTC) PT Lowered to $180 at Wolfe Research

Wolfe Research analyst Mike Polark lowered the price target on iRhythm Technologies (NASDAQ: IRTC) to $180.00 (from $200.00) while maintaining a Outperform rating.

The analyst comments "We rate IRTC shares Outperform and have a $180 target price which is supported by DCF and simplistically represents ~6x 2027 revenue. Underneath our ‘multiples’ valuation framework is an attempt to “dream-the-dream” with a proper DCF. In the appendix of this note we attach a detailed long-term build for IRTC. Historically this one had been a struggle for us, although has gotten slightly “easier” with time. Things that could further improve ease of modeling would be more material EBIT margin leverage popping through and share capture upside on the Zio MCT launch catalyst 2027+. Net…the DCF shows an NPV near $180 target using 8% discount rate and 5% terminal growth. Our Outperform rating considers not too hot, not too cold, but sensible valuation versus history & comps. Since IPO, IRTC EV/revenue has averaged ~7x. Versus 25 SMID med tech comps that today average ~3x, premium warranted. Why? That group of 25 expected to grow revenue next year low-teens %, on average. Whereas for IRTC, growth has been 20%-25%/year the last couple years and we expect high-teens % this year and next. Premium growth warrants premium multiple."

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