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Monday, Butterfly Network Inc. (NYSE:BFLY), currently trading at $2.48, maintained its Buy rating and $5.00 price target from TD Cowen, following the European Commission’s initiation of a review period concerning the company’s request to revoke an EU market exemption. This exemption currently safeguards lead piezoelectric crystals used in handheld ultrasound devices. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $3.50 to $5.00, suggesting significant upside potential.
Butterfly Network has made significant strides in its efforts to remove the market exemption for lead piezoelectric crystals, which are integral components of many handheld ultrasound devices. The European Commission’s commencement of the review and stakeholder consultation period marks a pivotal moment in this process. The public will have the opportunity to provide feedback until August 1, with an anticipated recommendation to the European Commission expected by the second quarter of 2026. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 6.06 and more cash than debt on its balance sheet, providing stability during this regulatory process.
The initiation of this review process by the European Commission could have implications for Butterfly Network’s market position, especially if the exemption is ultimately revoked. The outcome could potentially open the market to alternative technologies that Butterfly Network may offer, which do not rely on the lead piezoelectric crystals currently under protection.
TD Cowen’s analyst noted the significance of this development for Butterfly Network, emphasizing the company’s proactive steps in challenging the existing market exemption. The analyst’s reiteration of the Buy rating and price target reflects a continued positive outlook on the company’s stock.
Investors and stakeholders in the medical device sector will be closely monitoring the progression of Butterfly Network’s request and the European Commission’s review process. The final decision, expected in the coming years, may lead to substantial changes in the regulatory landscape for handheld ultrasound devices in the European market. With revenue growth of 25.77% in the last twelve months and a market capitalization of $613 million, InvestingPro subscribers can access additional insights, including 7 more ProTips and a comprehensive Pro Research Report, to better understand the company’s growth trajectory and market position.
In other recent news, Butterfly Network reported its first-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -$0.04, outperforming the forecasted -$0.07. Revenue for the quarter reached $21.2 million, slightly above the anticipated $21.05 million and marking a 20% increase year-over-year. Butterfly Network also provided guidance for the second quarter, projecting revenue between $23 million and $24.5 million. The company launched new products and initiatives, including the IQ3 probe and Butterfly Garden AI marketplace, contributing to its growth. Additionally, Butterfly Network is on the verge of signing its second hospital enterprise customer, which plans to integrate their Compass software throughout its network. The company remains focused on expanding its presence in medical schools and international markets. Butterfly Network’s strategic initiatives and product launches are expected to drive future growth, as indicated by the company’s leadership.
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