iRhythm (IRTC) could benefit from stronger sales growth, wider access to the cardiac monitoring market, improving margins and new product launches, while its VitalConnect acquisition could add another growth path, Oppenheimer said in a note emailed Monday.

The $287.5 million VitalConnect deal could give iRhythm access to about 20% to 30% of the mobile cardiac telemetry market that its Zio MCT product currently cannot reach, with the transaction expected to close by the end of 2026, Oppenheimer said.

Continued growth from existing customers points to deeper use of iRhythm's products, while added direct-to-consumer spending in H2 could support further demand, the investment firm said.

The recently cleared next-generation algorithm could lower technician review costs by more than $100 million over five years, while iRhythm still expects Zio MCT clearance in the first half of 2027, according to the note.

Oppenheimer kept its outperform rating and $185 price target, and said that some questions remain about how VitalConnect products will fit with iRhythm's existing technology and whether the acquisition could affect the rollout of its next-generation algorithm.

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