Morgan Stanley Raises iRhythm (IRTC) PT on MedTech Recovery Outlook

iRhythm Technologies, Inc. (NASDAQ:IRTC) is one of the best healthcare AI stocks to buy now. On December 2, Morgan Stanley raised its price target on iRhythm Technologies, Inc. (NASDAQ:IRTC) from $195 to $205, while maintaining an Overweight rating. The adjustment comes as part of a broader positive preview for the MedTech industry heading into 2026. Morgan Stanley said it sees the industry as well-positioned on several fronts. Some of the key drivers cited include major product cycles across the space, a supportive hospital spending environment, and current valuations that appear to be at trough levels.

In a separate update, on November 21, the company announced new data presented at the joint Asia Pacific Heart Rhythm Society (APHRS) and Japan Heart Rhythm Society (JHRS) scientific sessions in Yokohama, Japan. The presentation highlighted a large-scale retrospective analysis showing that the company’s Zio long-term continuous ECG monitoring (LTCM) system performed consistently in patients identified as Asian compared to non-Asian patients.

The study examined data from 408,470 US patients who used the Zio LTCM service for up to 14 days of monitoring. And despite Asian patients having lower baseline prevalence of conditions like atrial fibrillation (AF), heart failure, and coronary artery disease, detection rates remained similar. Repeat monitoring rates were also low and comparable. According to the company, these outcomes aligned with prior published studies, which demonstrated Zio LTCM’s high diagnostic yield and low retesting rates compared to other monitoring services. The findings support the generalizability of Zio monitoring across diverse populations.

iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital health company that develops wearable biosensors and cloud-based analytics for cardiac monitoring. The company has integrated AI into arrhythmia detection and predictive diagnostics.

While we acknowledge the potential of IRTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks.

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