Now could be the time to buy Cyclopharm Ltd (ASX: CYC) shares.
That's the view of analysts at Bell Potter, who believe this small-cap ASX share could deliver market-beating returns over the next 12 months.
Image source: Getty Images
What is Cyclopharm?
It is a medical device company operating in nuclear medicine.
Bell Potter notes that Cyclopharm's main revenue driver is Technegas, which is a system indicated for functional lung imaging.
The primary use of Technegas is diagnosis of pulmonary embolism in patients contraindicated for a CT scan. It was approved for use in the United States in September 2023.
Bell Potter was pleased with the small-cap ASX share's annual general meeting update. It points out that management remains bullish on the remainder of 2026 and beyond. It said:
The AGM commentary maintains the bullish outlook for the remainder of CY26 and beyond. The CEO re-affirmed guidance for 250 – 300 Technegas generators installed in the US by the end of 31 Dec 2026. There are currently 55 generators in market, hence 195 instals required to meet the bottom end of guidance. We estimate 11 instals in the first 17 weeks of CY26 including 5 since 31 March.
Bell Potter also highlights that the small-cap ASX share has a sizeable pipeline with a high conversion probability. The broker adds:
CYC has 175 contracts signed and awaiting installation with a further 111 at contract review stage and described as a very high conversion probability. Beyond these, the pipeline is extensive with several hundred devices at the proposal stage. Numerous hospital groups have now committed to subsequent devices across locations in their networks, in fact, half the growth (we presume in FY26) is attributable to 2nd and subsequent orders by existing clients. We conclude that the signs are highly encouraging for strong revenue growth in FY26.
~9 weeks remain in the half, hence CYC is on track to hit our forecast of 65 instals in the US by 30 June. The bottom end of the guidance requires an enormous acceleration of installations in 2H, however, with contracts in place the business is there to be had. The client service teams are now engaged with multiple installation programs at any one time to ensure a continuous stream of instals on a weekly basis.
Small-cap ASX share tipped to rise
According to the note, the broker has retained its buy rating and $1.00 price target on Cyclopharm's shares.
Based on its current share price of 84.5 cents, this implies potential upside of 18% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
The revenue base to CYC from 250 devices in the US is estimated at ~A$23m annual recurring revenue. We expect cash burn has now peaked and will begin to fall in 2H26. Next major catalyst is the June quarter update where we are increasingly confident that the pace of generator installations in the US will be sustained at the current rate or better. No earnings adjustments, PT remains $1.00.
