Investing.com-- TD Cowen analysts have increased their price target for Butterfly Network, Inc (NYSE:BFLY), citing robust momentum in the global rollout of its iQ3 handheld ultrasound device.
The brokerage reiterated its "Buy" rating on the stock and increased the price target to $4.50 from $3.00, highlighting meaningful progress in Butterfly’s strategic initiatives and promising long-term growth potential.
According to TD Cowen, Butterfly is on track to sustain strong double-digit revenue growth, with projections to break even on cash flow by 2027 and achieve a $500 million annual revenue run rate within the next five years.
"The business momentum has increased our conviction in potential upside to consensus expectations," analysts wrote.
The iQ3 product launches in the U.S. and international markets have driven quarterly outperformance and upward revisions in company guidance throughout 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 Medical (TASE:PMCN) Center (URMC). A recently published URMC study demonstrated that Butterfly’s handheld technology enhances patient care, operational efficiency, and financial outcomes, which has drawn interest from other hospital systems, TD Cowen said.
As the handheld ultrasound market continues to expand, TD Cowen sees Butterfly Network as well-positioned to capture increasing market share.