Shares of iRhythm Technologies (IRTC) were under pressure yesterday after Apple (AAPL) announced that its new Watch Series 4 had received FDA approval for a built-in electrocardiogram scanner, but have since bounced back. Commenting on Apple’s new watch, JPMorgan analyst Robbie Marcus argued that the device’s new features pose almost no competitive threat to iRhythm’s Zio XT or AT offerings, while his peer at Canaccord highlighted that it could even be a potential market expander of Zio.

APPLE WATCH SERIES 4: Apple unveiled yesterday its next-generation Watch. Dubbed Series 4, the device features a larger display, new UI, digital crown with haptics, faster performance, louder speaker, electrical heart sensor with electrocardiogram app and an optical heart sensor.

IRHYTHM SELLOFF A BUYING OPPORTUNITY: In a research note to investors following Apple’s event, JPMorgan’s Marcus recommended investors use any weakness in shares of iRhythm as a buying opportunity. While the news that Watch Series 4 had received FDA approval for a built-in electrocardiogram scanner looks like a “notable headwind” for iRhythm, a closer look at the new device shows that this new feature poses almost no competitive threat to the company’s Zio XT or AT offerings, he contended. Marcus pointed out that he does not see Apple turning the iWatch into a regulated medical device approved for clinical diagnosis. Attaining an approval with a similar label to iRhythm’s Zio would significantly slow the rate of innovation and put the consumer device at the whim of the Food and Drug Administration, he added. Instead, the analyst expects that greater consumer preliminary screening for heart arrhythmias will only expand the number of patients seeking medical diagnosis, which, in turn, would benefit iRhythm. The analyst reiterated an Overweight rating on iRhythm’s shares. Voicing a similar opinion, Canaccord analyst Jason Mills told investors that he would be an aggressive buyer of iRhythm’s stock as he views the addition of ECG monitoring capabilities to Apple’s new device as a potential market expander for the former’s Zio and A-ECG devices. Wearable devices further highlight the benefit of prophylactic monitoring, helping funnel patients into physicians’ offices, which Mills thinks will eventually lead physicians to prescribe dedicated, continuous monitoring devices like Zio. The analyst noted he continues to believe iRhythm has built and continues to advance a platform that is actively changing the paradigm in ambulatory ECG monitoring. He reiterated a Buy rating on iRhythm’s shares, while raising his price target on the stock to $100 from $93.