LeoPatrizi Medical device company iRhythm Technologies ( NASDAQ: IRTC ) traded higher on Thursday after Wolfe Research raised its recommendation to Outperform from Perform following a valuation update. Wolfe said its $115 per share target on iRhythm ( IRTC ) is backed by its discounted cash flow (DCF) technique and reflects a ratio of nearly 5x for the company's enterprise value in terms of its 2025 revenue (EV/revenue). The firm notes that the cardiac device maker's EV/revenue multiple has averaged 5.
5x over the past 12 months and approximately 9x since its IPO. Meanwhile, 30 of its rival MedTechs with small and medium sized capitalizations (SMID caps) have averaged nearly 3.5x for the same multiple.
However, Wolfe notes that iRhythm ( IRTC ) deserves a premium multiple as it projects the company to generate high teen growth, whereas the peer group is expected to witness low teen average growth. More on iRhythm Technologies iRhythm Technologies, Inc. (IRTC) Q1 2024 Earnings Call Transcript iRhythm stock falls as much as 8% amid Zio media report iRhythm Technologies Non-GAAP EPS of -$1.
23 misses by $0.24, revenue of $131.93M beats by $3.
52M Seeking Alpha’s Quant Rating on iRhythm Technologies Historical earnings data for iRhythm Technologies.