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.
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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%.
