It could be time to buy-low on this ASX small-cap stock according to brokers

This ASX healthcare stock keeps attracting positive ratings, with one broker now tipping a 268% rise.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Last week, the team at Bell Potter released updated guidance on ASX small-cap stock EBR Systems Inc (ASX: EBR) after the company announced a preliminary version of its operating metrics. 

The ASX small-cap stock has developed its patented Wireless Stimulation Endocardially (WiSE) technology for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

Two health workers taking a break.

Image source: Getty Images

What did EBR Systems report?

Last week, its release revealed a strong Q1 2026 growth in commercial cases.

It also said its WiSE® System was successfully implanted in 41 commercial patients during the quarter, bringing total implants across the pilot phase and Limited Market Release to 71. 

John McCutcheon, EBR Systems' President & Chief Executive Officer said in Q1 2026, the company made impressive progress across both commercial and clinical programs. 

Case volumes increased strongly during the quarter, reflecting growing physician experience, expanding site readiness and the steady execution of our Limited Market Release. 

We also continued to advance important clinical initiatives, with further enrolment in both the WiSE-UP post-approval study and the TLC-AU feasibility study, helping to expand the body of evidence supporting the WiSE System across a broader patient population.

This news prompted positive share price movement to end last week, with EBR Systems shares closing at $0.67. 

Bell Potter's buy recommendation and recent price target of $2.00 following this release indicates a potential upside of roughly 194%. 

Following this report, the team at Morgans also provided an updated outlook on EBR Systems shares. 

Momentum building

In a note out of the broker last Friday, Morgans said 1Q26 delivered a step-change in commercial execution, with 41 implants (+128% q/q) and preliminary revenue of US$2.25-2.36m, materially ahead of prior run-rate. 

Importantly, growth is being driven by repeat usage, not just new site additions, with the majority of 1Q implants coming from existing centres, supporting confidence in utilisation and scalability.

Morgans also said leading indicators remain strong, with 37 purchasing agreements, 55 physicians trained, and double-digit physician training demand, alongside with emerging multi-site IDN/GPO contracts. 

Buy recommendation in tact 

Morgans also noted that commercial bottleneck remains execution (sales capacity and contracting), not demand, with patient backlogs building and physician engagement "very high". 

We make no changes to CY26-28 forecasts or A$2.47 DCF-based valuation. BUY.

From last week's closing price of $0.67, this target indicates an estimated upside of approximately 268%. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Woman with long hair smiles for the camera.
Healthcare Shares

Why I'd buy CSL shares while sentiment is weak

The market no longer treats this ASX healthcare giant as flawless, and that may make the investment case more interesting.

Read more »

Six smiling health workers pose for a selfie.
Healthcare Shares

Is this exciting healthcare stock a buy, hold or sell after rocketing 16% yesterday?

Can this soaring stock keep rising?

Read more »

A man in a business suit scratches his head looking at a graph that started high then dips, then starts to go up again like a rollercoaster.
Broker Notes

Down 28% in a year, should I buy the dip on Resmed shares right now?

A leading analyst provides his outlook for the beaten-down ResMed share price.

Read more »

A businessman points to an arrow going up on a graph, indicating a share price rise for an ASX company.
Broker Notes

Up 1,277% in a year, why 4DMedical shares are tipped for more outsized gains

A leading analyst forecasts more outperformance from 4DMedical’s rocketing shares. But why?

Read more »

A person bounces another up high from a seesaw as the one in the air looks through a telescope into the future.
Healthcare Shares

Has the CSL share price finally bottomed out?

Is this beaten-down ASX healthcare giant finally turning a corner?

Read more »

A woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Why everyone selling Cochlear shares right now could regret it in 3 years

Cochlear shares are down 65%. Here's why investors selling up right now could look back and wish they'd done the…

Read more »

A doctor or medical expert in COVID protection adjusts her glasses, indicating growth or strong share price movement in ASX medical, biotech and health companies
Healthcare Shares

Here's what brokers tip for CSL shares over the next 12 months

The beaten-down biotech company's shares are still falling.

Read more »

three excited doctors with hands in the air
Healthcare Shares

Pro Medicus announces $16m US contract renewal

Pro Medicus secures a major US contract renewal, strengthening its US footprint and underlining continued client retention.

Read more »