It was a tough day for Nanosonics Ltd (ASX: NAN) shares yesterday.
Investors heavily exited their positions after the company released its 2026 half-year result.
As a result, Nanosonics shares dropped 9.89%.
It is now trading at a 52-week low, closing yesterday at $3.28.
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What did the company report?
Nanosonics is an Australian healthcare company specialising in infection prevention.
Yesterday, the company reported for FY26 H1:
- Total revenue of $102.2 million, up 9% on prior corresponding period (pcp)
- Recurring revenue of $75.7 million, up 9% on pcp, and capital revenue of $26.5 million, also up 9% on pcp
- EBIT of $8.4 million, down 3% on pcp.
Commenting on the results, Michael Kavanagh, Chief Executive Officer and President of Nanosonics said:
The first half marked the successful launch of our next generation trophon technologies including trophon3 and the trophon2 Plus software upgrade package. Customer feedback to date has been highly encouraging particularly in relation to the workflow enhancements and digital capabilities.
However, it seems investors were not as convinced, as Nanosonics shares slumped nearly 10% following the announcement.
What are experts saying about Nanosonics shares?
With Nanosonics shares trading at a 52-week low, it could appear to be a buy low opportunity.
However a new report from Bell Potter indicates prospective investors should proceed with caution.
Following the results yesterday, the broker said the stock is oversold and the current market price represents a reasonable entry point.
With that being said, the broker has a hold recommendation on Nanosonic shares.
Bell Potter commented that the US business performed strongly, delivering double-digit growth in both capital equipment and consumables.
However, total revenue did not grow compared to the previous half, which is the first time this has happened since the end of COVID.
This slowdown was mainly due to currency headwinds and slower growth in consumable sales.
Growth in ex US markets is wafer thin, hence all the growth must be generated from the US market which faces currency headwinds and sluggish demand growth in consumables.
Based on this guidance, Bell Potter also lowered its price target to $3.60 (previously $4.10).
From yesterday's closing price, that indicates approximately 9.8% upside.
The stock is now trading at near 1 year lows with EV/Rev ~4.1x, which is as low as it has been for some time. Our earnings forecasts for FY26 – FY28 have been impacted by the stronger A$.
Elsewhere, estimates from analysts via TradingView indicate a more optimistic outlook for Nanosonics shares.
Analysts have an average one year price target of $4.54, which indicates approximately 38% upside.
