HeartFlow, Inc. (HTFL) has received a new Buy rating, initiated by Piper Sandler analyst, Matthew O’Brien.
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Matthew O’Brien has given his Buy rating due to a combination of factors that highlight HeartFlow, Inc.’s potential for growth and profitability. The company is a commercial-stage medtech firm specializing in AI-powered software for diagnosing and treating coronary artery disease. Despite its current minimal penetration in the $3.1 billion coronary blood flow market, HeartFlow is well-positioned for expansion in the $2.9 billion plaque analysis market, suggesting significant room for market share gains.
HeartFlow’s strong gross margin profile and the potential for margin expansion further support the positive outlook. The company’s software programs, FFR-CT and Plaque, are backed by robust clinical trials and enjoy broad adoption in hospitals, creating a substantial barrier to entry for competitors. With excellent reimbursement and supportive guidelines, HeartFlow is set for a long growth trajectory. Although the stock trades at a premium, its solid growth prospects and improving profitability justify this valuation, leading to the Overweight rating and a $38 price target.
In another report released today, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $35.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HTFL in relation to earlier this year.