Here is Why Hedge Funds Are Appreciating iRhythm Holdings (IRTC)

iRhythm Holdings (NASDAQ:IRTC) is one of the 12 best Medical Devices stocks to invest in according to Hedge Funds.

On January 12, Morgan Stanley maintained its Overweight rating on iRhythm Holdings (NASDAQ:IRTC). The firm assigned a price target of $205, which represents a 35% upside from the current level.

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The rating came after iRhythm Holdings (NASDAQ:IRTC) announced its preliminary results for the fourth quarter, posting revenues of around $207 million amid volumetric growth. This represented outperformance relative to consensus estimates, which stood at $200 million. As per the company’s 2026 guidance, midpoint revenues are projected at around $875 million, which, according to Morgan Stanley, does not include expected numbers from iRhythm’s next-generation Mobile Cardiac Telemetry (MCT) device.

Earlier on January 5, Vijay Kumar from Evercore ISI had also revised his rating for iRhythm Holdings (NASDAQ:IRTC), to Outperform. He adjusted his price target estimate from $194 to $210, which now offers an upside potential above 38% from the prevailing level.

iRhythm Holdings (NASDAQ:IRTC) is a digital healthcare company that develops and commercializes device-based Zio biosensor technology for diagnosing cardiac arrhythmias. It offers both long-term and short-term cardiac monitoring services, as well as mobile cardiac telemetry monitoring. The company also incorporates AI-based data analytics in its operations.

While we acknowledge the risk and potential of IRTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IRTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.