Butterfly Network shares jump on Needham buy rating

Butterfly Network Inc. shares rose 11.5% in morning trading Tuesday after Needham initiated coverage with a Buy rating and a $10.00 price target.

Needham analyst David Saxon said the company's proprietary cMUT semiconductor chip-based ultrasound technology is creating a new wave of medical devices across multiple clinical categories.

Saxon pointed to BFLY's Embedded business model, which licenses its Ultrasound-on-Chip platform to third-party developers, as a way for the company to enter new markets beyond its core handheld ultrasound devices.

The initiation follows TD Cowen's September 11 reiteration of its Buy rating with a $10.00 price target.

Butterfly Network reported revenue of $32.6 million in its most recent quarter, up roughly 39% year-over-year. The Embedded segment posted strong growth, while gross margins expanded to approximately 71%. Management raised its full-year revenue outlook.

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