In a report released today, Josh Jennings from TD Cowen maintained a Buy rating on Butterfly Network (BFLY – Research Report), with a price target of $5.00.
Josh Jennings has given his Buy rating due to a combination of factors that highlight Butterfly Network’s promising financial performance and growth potential. The company has successfully met its revenue and EBITDA guidance for the first quarter, with revenue reaching $21.2 million and an adjusted EBITDA of ($9.1) million, which aligns well with market expectations. This performance is underscored by a 20% increase in total revenue, driven by strong sales in the U.S. and internationally, as well as the successful delivery of semiconductor chips to a new partner.
Despite the conservative approach of maintaining guidance, Butterfly Network shows several growth catalysts, including an upcoming hospital enterprise opportunity. The company’s gross profit and margin have improved significantly, and operating expenses have decreased. Additionally, the reduction in net cash used in operations and a smaller net loss compared to the previous year further support the positive outlook. These factors suggest that the current stock price does not fully reflect the company’s progress and potential, justifying the Buy rating.
Jennings covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Edwards Lifesciences, and Johnson & Johnson. According to TipRanks, Jennings has an average return of 0.2% and a 45.47% success rate on recommended stocks.
In another report released today, Lake Street also reiterated a Buy rating on the stock with a $5.00 price target.