William Blair starts Butterfly Network with Outperform rating

Published 17/03/2025, 13:08
William Blair starts Butterfly Network with Outperform rating

On Monday, Butterfly Network, Inc. (NYSE:BFLY) received a new stock rating from William Blair, commencing coverage with an Outperform rating. The research firm highlighted the company’s innovative approach to ultrasound technology, which could potentially transform the digital ultrasound market. The stock, currently trading at $2.68, has shown remarkable momentum with a 150% return over the past year, though InvestingPro data indicates current trading levels are slightly above Fair Value.

Butterfly Network’s proprietary Ultrasound-on-Chip (UoC) technology has set it apart in the healthcare technology sector. William Blair’s analysts pointed out that this technology is not only pioneering within the industry but also plays a crucial role in democratizing access to medical imaging and increasing the total addressable market for the company. The company maintains strong financial health with a current ratio of 3.99 and holds more cash than debt on its balance sheet, according to InvestingPro analysis.

According to the firm’s analysts, the current market valuation of Butterfly Network reflects only partial success in its core markets, which include point-of-care and hospital settings. However, they are optimistic that if the company successfully executes its growth strategies, the stock price is likely to experience a significant increase.

The firm’s coverage initiation underscores the potential they see in Butterfly Network’s ability to expand its reach and impact within the healthcare industry. The analysts believe that the company’s technology and market strategy could lead to substantial growth in shareholder value.

Investors and market watchers will be keeping a close eye on Butterfly Network as it continues to navigate the competitive healthcare technology landscape, armed with its unique ultrasound technology and the positive outlook from William Blair.

In other recent news, Butterfly Network reported fourth-quarter revenue of $22.4 million, surpassing analyst estimates of $20.1 million and reflecting a 35% year-over-year increase. The company’s adjusted earnings per share were slightly better than expected at -$0.08, compared to the forecast of -$0.09. Product revenue saw a significant 45% rise, totaling $14.7 million, attributed to increased sales and higher prices for the iQ3 ultrasound probe. Software (ETR:SOWGn) and services revenue also grew by 20%, reaching $7.6 million. For fiscal 2025, Butterfly Network projects revenue between $96 million and $100 million, aligning with Wall Street’s estimate of $97.8 million, indicating a 20% growth. TD Cowen analyst Joshua Jennings raised the company’s price target to $5.00 from $4.50, maintaining a Buy rating, citing Butterfly Network’s strong quarterly performance and future prospects. Jennings noted that the company’s 2025 revenue guidance might be conservative, further emphasizing the potential for growth. Additionally, Butterfly Network recently raised $81.7 million through a public offering to support innovation and expand its imaging technology. Despite these positive developments, the stock experienced a slight dip, which some attribute to a previously misreported news headline that inaccurately suggested the company had missed expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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