ASX healthcare stock Saluda Medical Inc (ASX: SLD) has endured a rough 12 months.
So far in 2026, its share price is down 24%.
However it appears the tide could be turning after the company posted its H1FY26 result yesterday.
The stock price soared 9.6% higher following the release.
Here's what the company reported.
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H1 FY26 Results
Saluda Medical Inc is a commercial-stage medical device company focused on developing treatments for chronic neurological conditions using its novel neuromodulation platform.
It is currently a single-product company, centred around its differentiated SCS product called the 'Evoke System'.
Yesterday the ASX healthcare stock reported:
- International revenue of US$11.0 million (+27% vs pcp)
- Acceleration in global revenue growth (+ 17% vs prior corresponding period (pcp) to US$39.4 million), driven by increase in US trained sales reps and active physicians
- US implanted patient growth of 17% vs pcp, driven by an increase in active implanting physicians.
Commenting on the release, Saluda's Chief Executive Officer, Barry Regan, said:
We are pleased with the momentum within the first six months of FY26. We saw continued growth in the active implanting physician base and remain confident in our ability to build the size and quality of our sales force as planned heading into the new calendar year.
Our team continues to be focused on execution and driving the organisation in line with our growth strategy. Our first half performance gave us the confidence to previously increase our FY26 revenue guidance.
Additionally, we expect to improve on our other key FY26 financial metrics of gross margin, adjusted EBITDA, and cash used in operations.
Buy recommendation for this ASX healthcare stock
Following the result, the team at Bell Potter reiterated its buy recommendation on the ASX healthcare stock.
In a report yesterday, the broker said the stock is trading at undemanding multiples of <1x EV/Revenue and ~1.5x Price/Revenue based on its FY27 forecast, with expected growth of +25% in 2H26, mostly driven by the US.
Management have so far demonstrated strong execution slightly ahead of the plans laid out at the time of the IPO.
Bell Potter has a 12 month price target of $2.70 on this ASX healthcare stock.
From yesterday's closing price of $1.085, this indicates a potential upside of 148.8%.
Bell Potter isn't the only broker with a positive outlook.
Earlier this month, Morgans put a speculative buy rating and $3.07 price target on its shares.
That indicates a potential upside of 182%.
