Butterfly Network Receives 'Buy' Rating from Needham, Shares Rise Over 21%
On September 22, Butterfly Network (BFLY) saw its stock price rise by nearly 22% after investment firm Needham & Company issued a new 'buy' rating with a $10 price target. The recommendation was based on the company's innovative cMUT technology and potential to expand into multiple medical markets. The positive momentum was further supported by Butterfly Network’s partnership with Merge Labs, backed by Sam Altman, which named BFLY as its exclusive ultrasound-on-chip supplier for brain-computer interfaces. This deal is expected to generate high-margin recurring revenue similar to the company's previous collaboration with Midjourney that boosted gross margins. Institutional confidence in Butterfly Network also increased significantly during Q2 2026, with hedge fund holdings more than doubling from $171 million to $425 million. Glenview Capital and Hood River Capital were among the top holders.
Tickers: $BFLY
Topics: Butterfly Network medical technology Merge Labs Needham & Company Sam Altman