Shares of Butterfly Network (BFLY) surged on a new rating from big analysts scoring a bullish outperform rating which signals large buying in the weeks ahead.
Butterfly Network scored an outperform rating from Cowen analyst Joshua Jennings with a price target of $20, representing approximately 43% upside from Friday’s closing price. Butterfly Network sells its Butterfly iQ+, a handheld ultrasound device, that works with a mobile app. Healthcare providers pay a subscription fee to use the software platform.
The analyst is forecasting strong adoption of Butterfly iQ and believes that recurring software-as-a-service (SaaS) revenue can grow at a compound annual growth rate (CAGR) of 60%. Cowen’s Jennings is the first major Wall Street analyst to cover Butterfly Network.
You should also note that the earnings report for fiscal first-quarter results last month disappointed investors. Butterfly Network’s guidance called for 2023 revenue in the range of $76 million to $80 million so if you believe in the technology, right now is a great time to buy in at a discount.
