BTIG downgraded iRhythm Technologies (NASDAQ:IRTC) to “neutral” from “buy,” noting that the shares recently surpassed BTIG’s price target of $28 but have fallen $1.25 at midday Dec.6 to $27.98.
“We are not making material changes to our forward estimates, we see the valuation as fair and would prefer to wait for the company to grow into its earnings multiple,” writes Dr. Sean Lavin.
“If this year’s growth rate continues, we could see upside to the stock next year but prefer some conservatism due to larger numbers being harder to grow from,” he said, adding that for now, “we are moving to the sidelines and now rate shares neutral.”
Dr. Lavin said third quarter revenue topped his estimate and expenses trended better as well. Improving physician adoption continues to drive above-average growth, he added. “Fundamentally, we think all the growth levers remain intact.”
