Investing.com– Analysts at TD Cowen have raised their price target for Butterfly Network, Inc (NYSE 🙂, citing strong momentum in the global launch of its iQ3 portable ultrasound device.
The brokerage reiterated its “Buy” rating on the stock and raised the price target to $4.50 from $3.00, highlighting significant progress on Butterfly’s strategic initiatives and promising long-term growth potential.
According to TD Cowen, Butterfly is on track to maintain strong double-digit revenue growth, with projections to break even on cash flow by 2027 and reach an annual revenue rate of $500 million over the next five years.
“Business momentum has increased our conviction in a possible breakthrough to consensus expectations,” the analysts wrote.
iQ3 product launches in the US and international markets have driven quarterly outperformance and upward revisions to the company’s forecasts through 2024, analysts said.
Management’s refined target-setting strategy and improved execution have bolstered investor confidence. Strong demand across all sales channels has further strengthened the company’s business momentum, TD Cowen analysts said in a note.
Butterfly has solidified its health system strategy, exemplified by its partnership with the University of Rochester Doctor (TASE:) Center (URMC). A recently published URMC study showed that Butterfly’s wearable technology improves patient care, operational efficiency and financial results, which has sparked interest from other hospital systems, TD Cowen said.
As the portable ultrasound market continues to expand, TD Cowen believes Butterfly Network is well positioned to capture increasing market share.