Should You Buy Butterfly Network Inc (BFLY) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
4.150
1 Day change
-3.71%
52 Week Range
5.030
Analysis Updated At
2026/01/28
Buy for a long-term position at/around $4.43. The trend setup is broadly constructive (bullish moving-average stack), Wall Street has recently raised targets and reiterated Buy ratings, and options positioning is extremely call-skewed (risk-on sentiment). There are no Intellectia proprietary buy signals today, but the current price still looks like an acceptable entry for a beginner long-term investor who doesn’t want to wait for a “perfect” pullback.
Technical Analysis
Trend/structure: Bullish moving averages (SMA_5 > SMA_20 > SMA_200) suggests an uptrend bias on the intermediate timeframe.
Momentum: MACD histogram is negative (-0.0278) and expanding lower, indicating near-term momentum has softened even while the broader MA trend remains bullish.
RSI: RSI_6 ~53 (neutral), consistent with consolidation rather than an overbought condition.
Levels to watch: Pivot 4.49 is just above current price (4.43). A reclaim/hold above ~4.49 improves odds of a push toward R1 4.895 and R2 5.145. If weakness continues, first support is S1 4.085 (then S2 3.835).
Pattern-based short-horizon stats: Similar-pattern read shows ~12.62% probability-weighted move over the next month (near-term day/week expectations are flatter), which aligns with a “base then trend” setup rather than a straight-line move.
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock recently.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment: Extremely call-heavy positioning (OI put/call 0.08; volume put/call 0.05), typically signaling bullish sentiment/speculation.
Activity/positioning: Call open interest 106,245 vs put open interest 8,532—skew strongly favors upside exposure.
Volatility: 30D IV ~96.75 vs historical vol ~127.72; IV percentile 38 and IV rank ~14.97 suggest options are not at “peak” relative richness, while absolute volatility remains high.
Flow vs baseline: Today’s volume ~4,606 vs 10D avg ~4,038 (roughly in-line/slightly higher), and today’s OI ~114,777 with ~107.5% vs 30D OI average—participation remains healthy.
Technical Summary
Sell
6
Buy
7
Positive Catalysts
Analyst-driven catalyst: Multiple recent Buy reiterations and price-target raises (to ~$5.25–$5.50) citing platform payoff and improving revenue outlook.
Operational narrative: Commentary points to core ultrasound growth, iQ3 probe momentum, and enterprise software adoption as drivers.
Sector tailwind (from news flow): Medical imaging and AI diagnostics growth themes remain supportive for ultrasound/AI-enabled workflows, which can help investor sentiment toward the space.
Neutral/Negative Catalysts
Near-term technical risk: MACD is negative and worsening, suggesting the stock can chop or dip before resuming trend.
Profitability/margins: Latest provided quarter shows gross margin dropping to negative territory (reported -17.48%), a material red flag that can pressure the stock until clarity improves.
Macro/market risk for hospitals: Prior notes referenced hospital purchasing headwinds; if budgets tighten again, sales cycles can slow.
No politician/influential accumulation signal: No recent congress trading data available; hedge funds/insiders show neutral recent activity (no clear “smart money” catalyst).
Financial Performance
Latest quarter provided: 2025/Q3.
Revenue: $21.49M, +4.51% YoY (steady growth, but not rapid acceleration based on this single quarter).
Earnings: Net income improved to -$33.97M (better YoY), EPS improved to -$0.13 (better YoY), indicating narrowing losses.
Key concern: Gross margin reported at -17.48 (down ~129% YoY), which is the biggest negative in the snapshot and needs improvement for the long-term thesis to strengthen.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Ratings have stayed constructive (multiple Buys) while price targets have been raised meaningfully over the last few months (roughly from ~$2–$4 up to ~$5–$5.50).
What Wall Street likes: Evidence of platform payoff, improving revenue outlook (including expectations for stronger Q4), and growth drivers like probe upgrades and software/enterprise adoption.
What Wall Street is implicitly discounting: Ongoing losses and execution/margin normalization; earlier commentary also acknowledged macro headwinds in hospital purchasing cycles.
Overall street view from the provided notes: Bullish, with targets implying moderate upside from ~$4.43.
Wall Street analysts forecast BFLY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BFLY is 4.25 USD with a low forecast of 4 USD and a high forecast of 4.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast BFLY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BFLY is 4.25 USD with a low forecast of 4 USD and a high forecast of 4.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 4.310
Low
4
Averages
4.25
High
4.5
Current: 4.310
Low
4
Averages
4.25
High
4.5
Craig-Hallum
Craig-Hallum
maintain
AI Analysis
2026-01-21
Reason
Craig-Hallum
Craig-Hallum
Price Target
AI Analysis
2026-01-21
maintain
Reason
Craig-Hallum raised the firm's price target on Butterfly Network to $5.25 from $3.25 and keeps a Buy rating on the shares following the company's recent announcements, including at least 17% year-over-year Q4 revenue growth, implying $26.2M vs. Street's $25.7M, with the full year landing at $92.3M. While some Q4 revenue came from the Midjourney partnership, the firm notes core business was the majority of growth.
Lake Street
Ben Haynor
Buy
maintain
$4
2026-01-20
Reason
Lake Street
Ben Haynor
Price Target
$4
2026-01-20
maintain
Buy
Reason
Lake Street analyst Ben Haynor raised the firm's price target on Butterfly Network to $5.50 from $4 and keeps a Buy rating on the shares. The firm, which expects investors both inside and outside of healthcare to notice the "platform payoff" from multiple areas of the company's business becoming more evident, anticipates multiple expansion this year, the analyst says in support of the firm's raised price target.
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