Saluda Medical Inc (ASX: SLD) is a recently listed ASX healthcare stock.
It is a commercial-stage medical device company commercialising spinal cord stimulation (SCS) therapy.
Saluda is currently a single product company, centred around its differentiated SCS product called the 'Evoke System'.
It is designed for the treatment of patients with chronic pain of the trunk and/or limbs.
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A bumpy ride
Since initially listing in December last year, this small-cap ASX healthcare stock has experienced volatility.
After opening at $1.27, the company saw its share price rocket 20% higher within the first week of trading.
However after topping out at $1.54, it has tumbled more than 26%.
This included a fall of more than 5% yesterday.
It now sits close to an all-time low at $1.13.
It's important to acknowledge that small-cap stocks can often experience increased volatility.
First update since December
Yesterday, the company released its first financial update since its IPO last December.
The company reported 1H26 revenue of $39.4m (+17% on pcp).
In a report from Bell Potter yesterday, the broker said the biggest positive was strong Q2 sales of $15.4m in the US (+17% on pcp and +19% qoq) driven by a greater number of physicians utilising the Evoke System.
International sales are a smaller contribution compared to the key US market but also increased during 1H26 to $11.0m (+26% on pcp).
Bell Potter said this reflected strong execution on commercial targets as the company beat its 1H26 revenue forecast. This resulted in an upgraded FY26 revenue guidance by 4% to $85m.
Buy recommendation for this ASX healthcare stock
The broker increased FY26 forecasts in line with the updated guidance while leaving FY27 and FY28 effectively unchanged.
Bell Potter said penetration into the US physician base is deepening and total volumes will benefit from the ongoing expansion and training of Saluda's US sales force, which is proceeding at good pace.
Updated forecasts imply 2H26 global revenue growth of +25% on the pcp, with the most relevant focus being US sales, which we now expect to reach $34.2m in 2H26 at a growth rate of +37% on the pcp.
The broker has retained its speculative buy recommendation on this ASX healthcare stock and slightly decreased its price target to $2.70 (previously $2.80).
From yesterday's closing price of $1.13, this indicates an upside of 138.94%.
We maintain our BUY (speculative) recommendation and look forward to accelerating market share capture of the crucial US market over the coming reporting periods.
