Artrya Ltd (ASX: AYA) shares are racing higher on Tuesday.
At the time of writing, the ASX AI stock is up 10% to $4.58.
Image source: Getty Images
Why is this ASX AI stock racing higher?
The catalyst for today's gain appears to be a broker note out of Bell Potter this morning.
According to the note, the broker has initiated coverage on the medical technology company's shares with a buy rating and $6.10 price target.
Even after today's strong gain, this still implies potential upside of 33% for investors over the next 12 months.
What is Artrya?
Artrya is a medical technology company that uses AI powered image-analysis software to improve the detection and management of coronary artery disease (CAD).
Commenting on the ASX stock, the broker said:
AYA's AI-powered cloud platform and image-analysis software, Salix, delivers near real time, point of care assessment and management of coronary artery disease. Proprietary AI and advanced engineering algorithms are applied to interpret data from CCTA scans and deliver results in a single point-of-care solution. In addition to a 3D model to visualise a patient's arteries, Salix conducts automated report writing, which clinicians can review and edit as needed. Unlike competing point solutions, Salix combines CCTA reporting, comprehensive plaque analysis, and non-invasive blood flow simulation, all within 10 minutes and from a single point-of-care solution.
This can materially improve clinical workflow, patient treatment, and enable clinicians to target medical procedures in a more effective fashion at a lower cost than traditional methods or competing solutions. Competing offerings typically take up to 24+ hours, are not as seamless as Salix, and depend heavily on offsite human involvement.
Big market opportunity
One of the reasons that Bell Potter is bullish on the ASX AI stock is its sizeable market opportunity. It explains:
AYA has two of its three Salix modules approved with the third module for Blood Flow (FFRCT) expected to be approved in 4Q26. Attractive reimbursement is in place for all three modules via Category 1 CPT codes, with an expected blended ASP of US$855 / scan.
AYA's unique offering creates an opportunity to achieve rapid growth and a material share of c.4.4m annual CCTA scans in the US market, growing at a CAGR of c.6.2%. AYA has three foundation customers in the US that should deliver c.15k scans annually by FY27. Through the SAPPHIRE study group, AYA has created a warm pipeline of six potential customers and c.400k annual scans that could generate c.10% market share and c.A$450m in annual revenue over the next decade. We expect AYA to reach EBITDA breakeven in FY28.
This could make Artrya one to watch in the coming years.
