This ASX healthcare stock could be a buy low bargain

ASX healthcare stocks have largely struggled over the last 12 months. 

At the time of writing, the S&P/ASX 200 Health Care Index (ASX:XHJ) is down 1.5% over the last year.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has risen more than 12%. 

When a sector has a down period, it can be an opportunity for investors to buy-low on companies that could bounce back in the long term. 

One such company that has gained the attention of experts is EMvision Medical Devices Ltd (ASX: EMV). 

What is EMvision?

EMvision Medical Devices is an Australian healthcare company. 

The company is focused on the research and development and commercialisation of neurodiagnostic technology for stroke diagnosis and monitoring, as well as other medical imaging needs. 

Its focus is portable, cost effective and non-invasive brain scanners, including a bedside device (emu) and an ultra-light weight first responder pre-hospital device.

Over the last 12 months, its share price has fallen more than 17%. 

However, broker Bell Potter has an optimistic view that this ASX healthcare stock could be a buy-low option. 

What did the broker have to say

In a report issued at the end of July, Bell Potter said EMvision Medical Devices is developing a novel approach to Stroke diagnosis / classification and has the potential to bring about a shift in speed of diagnosis and time to treatment.

The pre-validation trial results had encouraging sensitivity / specificity results for both haemorrhagic and ischemic stroke types, leading to the current validation trial for emu across six US / Australian sites, with a target FDA approval (De Novo pathway) timeline in 4QCY26 (with the risk of some delay), then serving as a predicate for the First Responder to follow a couple years later via 510(k) clearance.

While this presents upside, the broker also noted given the stage of development, there are risks. 

We do not expect EMV to become cash flow positive until FY31, and as such it will continue to be reliant on grant and equity funding, which means it remains subject to both completing project milestones and capital markets.

Updated price target 

EMvision Medical Devices closed yesterday at $1.78 each. 

Bell Potter has placed a speculative "buy" recommendation and $2.95 price target on this healthcare stock. 

Based on this target, the stock price could be set to rise approximately 65%. 

Elsewhere, online brokerage platform Selfwealth has a similar view, listing the stock as undervalued by roughly 68%.