iRhythm Holdings Gains Wall Street Favor as Cardiac Monitoring Demand Surges
SAN FRANCISCO — iRhythm Technologies, Inc. (NASDAQ: IRTC), a leader in AI-driven cardiac monitoring, is drawing intensified attention from major investment firms following a robust preliminary earnings report and optimistic long-term guidance.
On January 12, Morgan Stanley reiterated its Overweight rating on the stock, setting a price target of $205—implying a potential 35% gain from recent trading levels. This vote of confidence came shortly after iRhythm disclosed preliminary fourth-quarter revenue of approximately $207 million, surpassing analyst consensus estimates of $200 million.
The company’s performance highlights growing demand for its Zio® wearable biosensors, which provide long-term and short-term cardiac monitoring. iRhythm also projects midpoint revenues around $875 million by 2026, a forecast Morgan Stanley notes could be conservative as it excludes contributions from the company’s next-generation Mobile Cardiac Telemetry (MCT) system currently in development.
Earlier in January, Evercore ISI analyst Vijay Kumar upgraded iRhythm to Outperform, raising his price target from $194 to $210. Kumar cited accelerating adoption of remote patient monitoring and iRhythm’s integration of artificial intelligence in arrhythmia diagnostics as key growth catalysts.
“iRhythm is positioned at the intersection of two powerful trends: the shift toward ambulatory cardiac care and the application of AI in med-tech,” said healthcare equity researcher Dr. Alisha Vance of the Berkeley Capital Group. “Their preliminary numbers suggest they’re executing well in a expanding market.”
Not all observers share the unbridled optimism. Marcus Thorne, a portfolio manager at a Boston-based hedge fund, offered a more critical take: “Let’s not ignore the regulatory overhang and rising competition. Every med-tech firm now claims an ‘AI advantage.’ The valuation already prices in perfection—any stumble in execution or reimbursement could trigger a sharp correction.”
Retail investor Sophie Chen, who has held iRhythm shares since 2021, expressed measured confidence: “As someone who values health-tech innovation, I believe in their model. But as an investor, I’m watching the 2026 targets closely. They need to convert technology leadership into sustained profitability.”
Industry analysts note that the broader telehealth and remote monitoring sector continues to benefit from post-pandemic infrastructure investments and aging demographics in key markets.
Disclosure: This analysis is based on public filings and analyst reports. It is for informational purposes only and does not constitute investment advice.