Should I Buy BFLY? BFLY 2026 Analysis

Should You Buy Butterfly Network Inc (BFLY) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

3.380

1 Day change

4.64%

52 Week Range

5.030

Analysis Updated At

2026/02/04

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Not a good buy right now at ~$3.95: momentum is still bearish (MACD histogram negative and worsening) and the stock is sitting just above first support.
Options positioning is very call-heavy (bullish sentiment), but it hasn’t translated into a confirmed price reversal yet.
Wall Street is constructive (multiple Buy ratings + higher targets), yet near-term catalysts are limited until earnings (2026-03-02 pre-market).
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend/Momentum: Bearish-to-neutral; MACD histogram -0.111 and negatively expanding signals downside momentum is still building.
RSI: 35.705 (weak/near-oversold but not a definitive reversal signal).
Moving averages: Converging MAs suggest consolidation, not a confirmed uptrend.
Key levels: Price (~3.95) is just above S1 (3.868). A break below S1 risks a move toward S2 (3.604). Upside requires reclaiming Pivot (4.296); resistances at 4.724 then 4.988.
Quant pattern read-through: Similar-pattern stats imply mild week bounce potential (+1.83%) but negative bias over the next month (-4.24%), aligning with the still-bearish MACD.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Extremely low put-call ratios (OI 0.08; volume 0.05) = strongly bullish/call-skewed sentiment.
Volatility: Very high IV (30D IV ~96.75%) but IV rank ~14.97 / percentile 38 suggests IV is not at extremes vs its own history; near-term IV has been higher (5D avg ~109.9), implying IV has been easing.
Activity: Today’s options volume (~~4,606) is slightly below the 30D average (~~89.9% of avg), so sentiment is call-skewed but not showing a major volume surge today.

Technical Summary

Sell

Buy

Positive Catalysts

- Analyst enthusiasm and raised price targets (multiple firms reiterating Buy).
- Indications of continued revenue expansion narrative (iQ3 probe and enterprise software adoption mentioned by initiating coverage).
- Potential for a technical bounce if support at ~3.87 holds, given near-oversold RSI and heavy call skew.

Neutral/Negative Catalysts

- Technical momentum is still deteriorating (MACD bearish and expanding), raising odds of a support breakdown.
- Next major scheduled catalyst is earnings (2026-03-02 pre-market); until then, the stock may drift with risk-off moves.
- Financial quality concern: gross margin reported as negative in latest snapshot, which can weigh on confidence in scalability.
- Similar-pattern forward stats show negative 1-month expectation (-4.24%).

Financial Performance

Latest quarter provided: 2025/Q3.
Revenue: $21.489M, +4.51% YoY (modest growth).
Net income: -$33.971M, improved YoY (loss narrowed vs prior year per provided change).
EPS: -$0.13, improved YoY.
Profitability flag: Gross margin dropped to -17.48% (meaningfully worse YoY per snapshot), a key negative trend despite improving losses.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Ratings are consistently Buy, with price targets raised materially in January 2026.
2026-01-21 (Craig-Hallum): PT raised to $5.25 from $3.25, Buy; cites ~17% YoY Q4 revenue growth implication and core business strength.
2026-01-20 (Lake Street): PT raised to $5.50 from $4, Buy; expects broader investor recognition and multiple expansion.
2025-12-30 (Freedom Capital): Initiated Buy with $5 PT; expects continued revenue expansion via probe + software.
Wall Street pros: Platform payoff narrative, growth expectations, and multiple expansion potential.
Wall Street cons (implied by data): profitability/gross margin pressure and reliance on proving sustained core growth.

4 Analyst Rating

Wall Street analysts forecast BFLY stock price to rise 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: 3.230

Low

Averages

4.25

High

4.5

Current: 3.230

Low

Averages

4.25

High

4.5

Craig-Hallum

maintain

AI Analysis

2026-01-21

Reason

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

2026-01-20

Reason

Lake Street

Ben Haynor

Price Target

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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BFLY Should I Buy

BFLY Should I Buy

Should You Buy Butterfly Network Inc (BFLY) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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