What Happened?
Shares of medical technology company iRhythm Technologies (NASDAQ: IRTC) jumped 3.4% in the afternoon session after Morgan Stanley raised its price target on the stock from $195 to $205.
The firm also maintained its Overweight rating on the shares. The change was part of a broader positive preview for the MedTech industry. Morgan Stanley said it saw the industry as well-positioned for several reasons. The key drivers cited included major product cycles across the sector, a supportive hospital spending environment, and stock valuations that appeared to be at trough levels.
After the initial pop the shares cooled down to $181.68, up 4.3% from previous close.
Is now the time to buy iRhythm? Access our full analysis report here.
What Is The Market Telling Us
iRhythm’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 2.8% on the news that a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies.
The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
iRhythm is up 103% since the beginning of the year, and at $181.68 per share, it is trading close to its 52-week high of $188.30 from November 2025. Investors who bought $1,000 worth of iRhythm’s shares 5 years ago would now be looking at an investment worth $776.36.
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