Analyst Josh Jennings of TD Cowen maintained a Buy rating on Butterfly Network (BFLY – Research Report), with a price target of $3.00.
Josh Jennings’ Buy rating of Butterfly Network’s stock is influenced by several factors. Firstly, Butterfly Network’s third quarter showed advancements in multiple areas, most notably with the launch of its AI marketplace, Butterfly Garden, and the FDA submission for its third-generation iQ3 probe. In addition, the company was able to reassert its 2023 guidance for a minimum revenue of $64M while also improving its EBITDA loss expectation by $5M.
In the third quarter, Butterfly Network’s revenue totaled $15.4M, which, although lower than last year’s $19.6M, was partly offset by a higher price. The company’s U.S. revenue was negatively affected by lower probe sales and the absence of last year’s sizable deals with the University of Rochester and the Gates Foundation. However, these losses were partially counterbalanced by increased subscription revenue and higher ASPs. Despite a reduction in product revenue, software and services revenue saw a 3% increase, contributing to 43% of the total revenue. Enhanced ASPs and manufacturing productivity contributed to a gross margin of 61%, an improvement from last year’s 56%. The adjusted EBITDA loss was $12.5M, a substantial reduction from the loss of $31.8M in the same quarter of the previous year. This is reflective of Butterfly Network’s recent cost-cutting measures. These factors, combined with a maintained 2023 revenue guidance of at least $64M and an improved EBITDA loss projection, led to Jennings’ Buy rating.
In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $3.75 price target.
See today’s best-performing stocks on TipRanks >>
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is neutral on the stock.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Butterfly Network (BFLY) Company Description:
Longview Acquisition Corp is a blank check company.
Read More on BFLY:
