Analyst Ratings January 28, 2026

Wells Fargo Starts Coverage on HeartFlow With Overweight Rating and $38 Target

Analyst cites AI-enabled FFR-CT platform, international growth and plaque metrics as potential catalysts amid strong revenue momentum

By Maya Rios HTFL
Wells Fargo Starts Coverage on HeartFlow With Overweight Rating and $38 Target
HTFL

Wells Fargo has initiated coverage of HeartFlow Inc. with an Overweight rating and a $38 per share target, implying roughly 22% upside from the stock's recent price. The research note underscores HeartFlow's leadership in AI-driven FFR-CT coronary analysis, potential expansion avenues and several revenue levers. Independent analyst consensus data shows a near-buy recommendation and a range of price targets from $35 to $40.

Key Points

  • Wells Fargo launched coverage with an Overweight rating and a $38 target, implying about 22% upside from the $31.21 share price.
  • HeartFlow reported $161.88 million in trailing twelve-month revenue, a 75.6% gross profit margin and a current ratio of 8.66, but is not expected to be profitable this year.
  • Recent quarterly results showed $46.3 million in revenue for Q3 2025 - up 41% year-over-year - outperforming Stifel and Canaccord Genuity estimates and prompting both to raise price targets to $40.

Wells Fargo has opened coverage on HeartFlow Inc. (HTFL) with an Overweight rating and a price target of $38.00 per share, signaling a potential gain of approximately 22% from the stock's recent trading level of $31.21. Analyst projections cited in the note align with broader market sentiment that leans positive: the consensus recommendation stands at 1.8 on the analyst scale, with target prices spanning $35 to $40.

Analyst view and upside drivers

In the initiation report, Wells Fargo highlighted HeartFlow's standing as a leading software and artificial intelligence player within the medical technology field, specifically for non-invasive coronary artery disease assessment. The analyst named in the report emphasized several specific sources of potential upside to Street estimates, including higher volumes of FFR-CT and plaque assessments, improved plaque average selling price (ASP), faster international expansion and penetration into asymptomatic coronary artery disease markets.

Those factors were presented as tangible levers that could lift revenue and margin performance as adoption of HeartFlow's technology widens.

Company financials and operating metrics

HeartFlow recorded $161.88 million in revenue over the last twelve months and carries a market capitalization of about $2.66 billion. The company reported a gross profit margin of 75.6%, a notably high level for a firm that has yet to report overall profitability. Balance sheet strength was also highlighted: the company's current ratio is reported at 8.66, and its balance sheet shows more cash than debt.

Despite these strengths, the firm is not forecast to be profitable this year. Data in the research note indicates that three analysts have recently adjusted their earnings estimates upward for the coming period, reflecting growing revenue momentum but stopping short of immediate profitability expectations.

Product profile and clinical positioning

HeartFlow's platform applies artificial intelligence to produce patient-specific analyses that quantify blood flow and assess coronary plaque burden. Those outputs are used to guide clinical decision-making for coronary artery disease, a condition that remains a leading cause of mortality. The technology is positioned to complement coronary CT angiography - CCTA - building on the strengths of that imaging modality as it becomes more widely used for non-invasive CAD testing.

Independent analyst data referenced in the coverage initiation also indicates that the stock is trading above its internal Fair Value estimate, even as the company retains a conservative financial profile with more liquidity than leverage.

Recent quarter and market responses

In its third quarter of 2025, HeartFlow reported revenue of $46.3 million, an increase of 41% year-over-year. That result exceeded the revenue expectations cited by two industry analysts - Stifel and Canaccord Genuity - whose estimates were roughly $42 million and $41.9 million, respectively. The quarter produced a reported loss per share of $0.27, while management and external analysts attributed the revenue upside to rising adoption of the company's FFR-CT coronary disease analysis software.

Following the quarter, both Stifel and Canaccord Genuity raised their price targets to $40 and maintained Buy ratings on the stock, citing the stronger-than-expected revenue trajectory.

Clinical endorsements

HeartFlow's quantitative coronary plaque assessment tool has garnered public support from major professional societies. The American College of Cardiology and the American Heart Association published statements endorsing the use of the tool in managing coronary artery disease, including for nonobstructive CAD management. Those endorsements were cited as meaningful validations of clinical utility within the research note.


Investment considerations

Wells Fargo’s initiation frames HeartFlow as a company with robust margin characteristics and clear clinical traction, while noting it is still on a path to sustained profitability. The firm’s projected price target and the analyst-identified growth levers suggest expectations for continued adoption and international expansion, which would influence both top-line growth and potential margin expansion over time.

For readers seeking deeper drill-downs, the note references a comprehensive Pro Research Report that provides additional analysis and strategy-oriented perspectives on the stock.

Risks

  • The company is not expected to be profitable this year, indicating ongoing operating losses that could pressure valuations and investor sentiment - impacting healthcare and MedTech sectors.
  • Analyst data indicates the stock is trading above its Fair Value estimate, implying valuation risk if growth or adoption slows - relevant to equity investors in the healthcare technology space.
  • Revenue and earnings momentum depend on adoption rates for FFR-CT, plaque assessments and international expansion; slower uptake would reduce expected upside - affecting medical device/software markets and hospital purchasing decisions.

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