Wells Fargo initiated coverage of HeartFlow with an Overweight rating, citing the potential for accelerated growth driven by the increasing adoption of CT-based coronary artery testing. The bank's optimism stems from a structural shift towards coronary CT angiography (CCTA), which currently only accounts for about 11% of non-invasive coronary artery disease tests.

HeartFlow's software analyzes blood flow and plaque buildup using CCTA, assisting in treatment decisions. Wells Fargo anticipates a compound annual growth rate of 11% for CCTA volumes in the U.S. over the next two years, projecting this will boost the utilization of HeartFlow's FFRCT and plaque analysis products. They forecast over 20% annual revenue growth for HeartFlow.

Penetration of FFRCT in addressable CCTAs is expected to rise from 55% in 2025 to 71% by 2027, with plaque analysis showing even sharper growth. Wells Fargo's physician survey suggests HeartFlow's leading position in FFRCT is sustainable. The company benefits from a first-mover advantage in AI-based diagnosis for coronary artery disease.

Wells Fargo set a $38 price target for HeartFlow, based on roughly 11 times estimated 2027 revenue. This valuation reflects projected sales growth exceeding that of comparable healthcare, diagnostics, and software companies. The bank highlighted HeartFlow's stronger margins compared to many healthcare firms, making it an attractive investment.