TD Cowen Reiterates a Buy Rating on Butterfly Network (BFLY), Sets a PT of $3.50

Butterfly Network, Inc. (NYSE:BFLY) is one of the best medical device stocks to buy according to analysts. On August 1, analyst Josh Jennings from TD Cowen reiterated a Buy rating on Butterfly Network, Inc. (NYSE:BFLY), setting a $3.50 price target.

The analyst told investors in a research note that Butterfly Network, Inc. (NYSE:BFLY) attained record quarterly revenue and gross margin in Q2 despite a challenging macro environment affecting sales cycles and enterprise deals.

Butterfly Network, Inc. (NYSE:BFLY) reported $23.4 million in revenue for the quarter, reflecting a 9% year-over-year growth. The growth was attributed to international market expansion and higher average selling prices.

The analyst further reasoned that Butterfly Network, Inc. (NYSE:BFLY) underwent an 18% growth in gross profit compared to last year, resulting in a record high gross margin of 63.7%.

Butterfly Network (NYSE:BFLY) is a digital health company specializing in transforming care through intuitive software, semiconductor-based ultrasound technology, services, and educational offerings.

The company has two portable ultrasound devices on the market: the third-generation Butterfly iQ3 and the second-generation Butterfly iQ+.

The Ultrasound-on-Chip technology powers both technologies, allowing them to undertake whole-body imaging on a single handheld probe through digital semiconductor technology.

While we acknowledge the potential of BFLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.