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.