TD Cowen raises PT on strong demand for handheld ultrasound via Investing.com
Investing.com– Analysts at TD Cowen raised their price target for Butterfly Network, Inc (NYSE: ), citing strong momentum from the global rollout of its iQ3 handheld ultrasound device.
The brokerage reiterated its “Buy” rating on the stock and increased its price target to $4.50 from $3.00, highlighting meaningful progress in Butterfly’s strategic plans and promising long-term growth potential.
According to TD Cowen, Butterfly is on track to sustain double-digit revenue growth, with projections that it will break even on revenue by 2027 and achieve an average revenue of $500 million over the next five years.
“Business momentum has boosted our confidence in the upside to consensus expectations,” analysts wrote.
The launch of the iQ3 product in the US and international markets drove a strong quarter-over-quarter performance and upward revisions to the company’s 2024 guidance, analysts said.
Refined management strategy and improved performance strengthened investor confidence. Strong demand across sales channels also bolstered the company’s business momentum, TD Cowen analysts said in a note.
Butterfly has strengthened its health systems strategy, exemplified by its partnership with the University of Rochester Medicine (TASE:) Center (URMC). A recently published URMC study showed that Butterfly’s handheld technology improves patient care, efficiency, and financial results, which has attracted interest from other hospital systems, said TD Cowen.
As the handheld ultrasound market continues to grow, TD Cowen sees the Butterfly Network as well positioned to capture increasing market share.
