The S&P/ASX 200 Index (ASX: XJO) slumped a further 0.6% to start the week as ongoing conflict in The Middle East continued to weigh on sentiment.
It's important for investors not to panic, as history shows the market will recover.
When markets fall, it does create buying opportunities for investors.
For those looking to monitor small-caps or penny stocks, here are three that have drawn positive outlooks from brokers.
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Paragon Care Ltd (ASX: PGC)
Paragon Care conducts its business largely within the Australian healthcare sector and in 7 countries across Asia. The core business is distribution of pharmaceutical medicines, consumables and capital products.
Following earnings results released last week, the team at Bell Potter released updated guidance on the healthcare stock.
The broker said it is cautiously optimistic on the full year EBITDA.
It said the two cornerstones of long term earnings growth for Paragon are the expanding footprint in Medical Technology particularly in Asia and the expanding footprint in pharmacy distribution.
At the recent half year result Asia Med Tech revenues grew 33% at gross profit margin of 45%. In the pharmacy wholesale business, the underlying growth rate (which excludes Infinity group trading from the prior period) was ~6%. The company estimates it has ~10% market share currently with aspirations to grow to 15%.
Included in the report from Bell Potter was a buy recommendation and price target of $0.30.
This indicates a potential upside of 46% for this penny stock from yesterday's closing price.
EBR Systems Inc (ASX: EBR)
EBR systems is another penny stock drawing a positive outlook from Bell Potter.
The company is primarily engaged in treatment for patients suffering from cardiac rhythm diseases by developing therapies using wireless cardiac stimulation.
The Wise CRT System uses proprietary wireless technology to deliver pacing stimulation directly inside the left ventricle of the heart.
Following recent earnings results, Bell Potter adjusted its outlook on this penny stock, including a revised price target of $2.00.
The broker maintained its buy recommendation.
EBR systems closed trading yesterday at $0.58.
Airtasker Ltd (ASX: ART)
This ASX penny stock is an online platform that connects people wanting to outsource tasks with people who are willing to do them for a fee.
Typical tasks include home cleaning, removal services, handyman jobs, admin work, photography, graphic design, and collection services.
It closed trading yesterday at $0.22, however it has attracted a buy rating and $0.51 price target from Morgans after it posted healthy half-year results last month.
