HeartFlow, Inc.: Promising Growth with Valuation Concerns Justifying Hold Rating

Morgan Stanley analyst Patrick Wood has maintained their neutral stance on HTFL stock, giving a Hold rating yesterday.

Patrick Wood has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing HeartFlow, Inc. The company has shown promising results in its first quarter as a public entity, with revenue exceeding expectations and profitability metrics that are likely to satisfy investors. The initial guidance for 2025 also appears favorable, surpassing consensus estimates by $3 million, which bodes well for future quarters.
Despite these positives, Wood maintains a Hold rating as the current valuation seems to already account for the anticipated growth in FFRct and Plaque. While the company is on track with its growth algorithm, and the sales funnel is performing well, the slightly lower than expected US average selling price is a minor concern. However, this is offset by a higher installed base and increased revenue cases per site. Overall, while the outlook is positive, the current stock price appears to reflect much of this optimism, justifying the Hold rating.

In another report released yesterday, TR | OpenAI – 4o also initiated coverage with a Hold rating on the stock with a $32.00 price target.