iRhythm Technologies Inc (IRTC) has seen its stock price decline by 10.76%, hitting a 20-day low, as the company faces a legal investigation regarding the Zio AT monitor.
The investigation, initiated by Kuehn Law, PLLC, focuses on potential misrepresentation by company officers, which may have led to inflated stock prices and harmed shareholder interests. Despite this legal challenge, iRhythm has provided an optimistic revenue guidance upgrade, projecting 2026 revenue to reach between $870 million and $880 million, driven by strong growth in unit volume and clinical evidence supporting its Zio monitoring system.
The implications of this situation suggest that while the company is navigating significant legal hurdles, its positive revenue outlook and strategic plans for growth in the digital health sector may still attract investor interest, albeit with caution due to the ongoing investigation.
Wall Street analysts forecast IRTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IRTC is 222.00 USD with a low forecast of 205.00 USD and a high forecast of 244.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast IRTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IRTC is 222.00 USD with a low forecast of 205.00 USD and a high forecast of 244.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 148.990
Low
205.00
Averages
222.00
High
244.00
Current: 148.990
Low
205.00
Averages
222.00
High
244.00
Goldman Sachs
Neutral
maintain
$202 -> $211
2026-01-09
Reason
Goldman Sachs
Price Target
$202 -> $211
AI Analysis
2026-01-09
maintain
Neutral
Reason
Goldman Sachs raised the firm's price target on iRhythm to $211 from $202 and keeps a Neutral rating on the shares. After a year when fundamentals diverged from stock performance, 2026 should represent a return to normalized patterns where organic growth defines relative valuation, the analyst tells investors in a research note.
Evercore ISI
Vijay Kumar
In Line -> Outperform
upgrade
$194 -> $210
2026-01-05
Reason
Evercore ISI
Vijay Kumar
Price Target
$194 -> $210
2026-01-05
upgrade
In Line -> Outperform
Reason
Evercore ISI analyst Vijay Kumar upgraded iRhythm to Outperform from In Line with a price target of $210, up from $194.
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Truist
Buy
downgrade
$230 -> $215
2025-12-18
Reason
Truist
Price Target
$230 -> $215
2025-12-18
downgrade
Buy
Reason
Truist lowered the firm's price target on iRhythm to $215 from $230 and keeps a Buy rating on the shares as part of a broader research note previewing 2026 for MedTech. The firm is more positive on the industry heading into next year given a more attractive relative sector valuation, though it also sees the possibility of it being a "source" vs. a destination of new healthcare investment flows, the analyst tells investors in a research note. Truist adds it prefers names with 2026 catalysts fueling durable revenue acceleration or out-of-favor near-term narratives.
Baird
David Rescott
Outperform
to
NULL
downgrade
$235 -> $220
2025-12-16
Reason
Baird
David Rescott
Price Target
$235 -> $220
2025-12-16
downgrade
Outperform
to
NULL
Reason
Baird analyst David Rescott lowered the firm's price target on iRhythm to $220 from $235 and keeps an Outperform rating on the shares. The firm adjusted ratings and price targets in medical technology as part of its 2026 outlook. Baird sees "several potential paths to improved" share performance for the group in 2026.
About IRTC
iRhythm Holdings, Inc. is a digital health care company, which creates solutions that detect, predict, and prevent disease. It designs, develops, and commercializes device-based technology to provide ambulatory cardiac monitoring services. It offers three Zio System options: the Zio Monitor System, the Zio XT System, and the Zio AT System. It offers its Zio ambulatory cardiac monitoring services, including long-term continuous monitoring, short-term continuous monitoring, and mobile cardiac telemetry (MCT) monitoring services, using its Zio Systems. The Zio Monitor System is a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor (the Zio Monitor patch) that records the electric signal from the heart continuously for over 14 days and the Zio ECG Utilization Software (ZEUS) System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
