Butterfly Network, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Josh Jennings from TD Cowen reiterated a Buy rating on the stock and has a $3.50 price target.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Butterfly Network’s strong performance and potential for future growth. Despite a challenging macro environment that has affected sales cycles and enterprise deals, Butterfly Network achieved record quarterly revenue and gross margin in the second quarter of 2025. The company reported revenue of $23.4 million, which was within its guidance range and marked a 9% increase year over year. This growth was driven by higher average selling prices and international market expansion, although domestic volume saw a decline.
Butterfly Network’s gross profit also saw an 18% increase from the previous year, resulting in a record-high gross margin of 63.7%. Additionally, the company’s efforts in cash conservation led to the lowest quarterly cash use ever, with a cash burn of approximately $7 million. These financial achievements, alongside a narrower adjusted EBITDA loss than projected, underscore the company’s operational efficiency and strategic positioning in the market. Jennings remains confident in Butterfly Network’s technology pipeline and new market opportunities, which contribute to the Buy rating.
According to TipRanks, Jennings is a 3-star analyst with an average return of 2.0% and a 49.90% success rate. Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Abbott Laboratories.