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Investing.com - TD Cowen has reiterated its Buy rating and $3.50 price target on Butterfly Network (NYSE:BFLY), citing the publication of the POCUS-CARE trial results. The medical device company, which maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.68, has shown robust revenue growth of 23% over the last twelve months. According to InvestingPro analysis, the company’s overall financial health score is rated as GOOD despite current market challenges.
The POCUS-CARE study demonstrates that Butterfly’s iQ3 device can significantly reduce costs and length of stay for inpatients, according to TD Cowen. The firm believes these results strengthen Butterfly Network’s clinical evidence base and should support the ongoing rollout of the iQ3 product.
TD Cowen views the stock’s recent decline of nearly 30% since late July as "overdone" and primarily a reaction to near-term headwinds discussed during the company’s second-quarter earnings call. The firm characterized these challenges as temporary rather than structural, multi-year obstacles. Indeed, InvestingPro data shows the stock has fallen over 45% in the past six months, trading significantly below its 52-week high of $4.98. Discover more insights and 8 additional ProTips about BFLY with an InvestingPro subscription.
The current Street consensus estimates for Butterfly Network include third-quarter revenue of $21 million, which falls at the midpoint of the company’s guidance range of $20-22 million, and 2025 revenue of $91 million. TD Cowen considers these forecasts achievable despite the temporary headwinds from delayed purchasing decisions amid changing macroeconomic conditions.
TD Cowen had previously outlined its bullish case for Butterfly Network in reports published on August 1 and August 5, and maintains that the current valuation is attractive given the company’s prospects. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with analyst price targets ranging from $2.00 to $4.00. Get access to the comprehensive Pro Research Report, available for BFLY and 1,400+ other US stocks, to make more informed investment decisions.
In other recent news, Butterfly Network, Inc. reported its financial results for the second quarter of 2025, achieving a record revenue of $23.4 million, which marks a 9% increase compared to the previous year. The company posted an earnings per share (EPS) loss of $0.03, surpassing the anticipated loss of $0.05. Additionally, Butterfly Network has revised its full-year revenue projections to range between $91 million and $95 million. In another development, Butterfly Network announced a partnership with Clipper Distributing LLC to commercialize its handheld ultrasound devices for veterinary practices in the United States. The agreement will make the Butterfly iQ+ Vet, which uses Ultrasound-on-Chip technology, more accessible to veterinarians nationwide. These recent developments highlight Butterfly Network’s strategic initiatives and financial performance.
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