Investing.com– Analysts at TD Cowen raised their price target on Butterfly Network, Inc (NYSE: ), citing strong momentum in the global rollout of its iQ3 handheld ultrasound device.
The brokerage reiterated its “Buy” rating on the stock and raised its price target to $4.50 from $3.00, highlighting significant progress in 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 reach $500 million in annual revenue by 2027, up from $500 million over the next five years.
“Business momentum increased our belief in potential growth in line with consensus expectations,” the analysts wrote.
The iQ3 product launch in the U.S. and international markets fueled quarterly better results and revisions to the company’s guidance through 2024, analysts said.
Management’s refined target-setting strategy and improved execution bolstered investor confidence. Strong demand across all sales channels further bolstered the company’s business momentum, TD Cowen analysts said in a note.
Butterfly has solidified its health system strategy, as demonstrated by its partnership with the University of Rochester Medical (TASE:) Center (URMC). A recently published URMC study showed that Butterfly’s handheld technology improves patient care, operational efficiency and financial results, drawing interest from other hospital systems, said TD Cowen.
As the handheld ultrasound market continues to expand, TD Cowen sees the Butterfly Network as well positioned to capture increasing market share.
