TD Cowen on Butterfly Network (BFLY): 'Key Study Published; Valuation Is Attractive'

TD Cowen analyst Joshua Jennings reiterated a Buy rating and $3.50 price target on Butterfly Network (NYSE: BFLY).

The analyst commented: "Key Study Published; Valuation Is Attractive & Accounts for Near-Term Headwinds; The results of the POCUS-CARE trial have been published. The study shows that iQ3 can drive meaningful reductions in cost and length of stay in the inpatient setting. The data add to BFLY's already robust clinical dossier and should help iQ3's rollout. We remain bullish on BFLY and think the stock's recent slump – partly a reaction to the near-term headwinds discussed on the Q2 call – is overdone.

The Street estimate for 2025 revenue now sits at $91M, while the Q3 revenue consensus is $21M, at the midpoint of the company's $20M-$22M guidance. We view these forecasts as achievable and think that headwinds that tempered BFLY's near-term outlook – delayed purchasing decisions amid changing macro dynamics – will be temporary rather than structural, multiyear obstacles. We believe the stock's near-30% decline since late July irrationally prices in the latter scenario. We outlined the bullish case for BFLY in detail in our August 1 and August 5 reports. We reiterate our Buy rating on the company's shares."

For an analyst ratings summary and ratings history on Butterfly Network click here. For more ratings news on Butterfly Network click here.

Shares of Butterfly Network closed at $1.56 yesterday.

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