Butterfly Network: Resilient Core, Expanding Ultrasound-on-Chip Opportunity Drives Reaffirmed Buy Rating

William Blair analyst Andrew Brackmann has maintained their bullish stance on BFLY stock, giving a Buy rating on December 8.

Andrew Brackmann has given his Buy rating due to a combination of factors that highlight both Butterfly Network’s near-term stability and long-term upside. He notes that management is entering what they view as a pivotal period, with 2026 positioned as a year when investors may start to recognize the value of the company’s technology beyond traditional point-of-care ultrasound. Early signs of traction, such as the Midjourney collaboration and strong interest from partners seeking to deploy Butterfly’s Ultrasound-on-Chip platform in non-POCUS applications, suggest a potentially much larger revenue opportunity than the core business alone.

At the same time, Brackmann sees the current operating trends as supportive of the investment case, with improving demand in the POCUS segment and confidence in meeting both fourth-quarter and 2026 revenue expectations. While 2025 faced temporary headwinds from funding cuts tied to USAID and uncertainties around hospital reimbursement, management views these pressures as short-lived, with delayed enterprise deals expected to materialize in 2026. In his view, the combination of a resilient core business, an expanding addressable market, and a rapidly evolving, differentiated technology platform meaningfully de-risks the story and creates room for substantial share price appreciation, underpinning his decision to reaffirm a Buy recommendation.