S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,702.6 points on Tuesday.
Here are some new ratings from the experts this week.
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Echo IQ Ltd (ASX: EIQ)
The Echo IQ share price is steady at 49 cents today, and up 73% over 12 months.
Morgans has a buy rating on this ASX tech share with a 12-month price target of $1.10.
The broker said:
EIQ has received a Not Substantially Equivalent (NSE) determination on its initial EchoSolv HF 510(k), despite an extensively validated dataset generated in line with FDA guidance. The device cannot be marketed under this application as submitted, pushing back the biggest near-term catalyst and revenue driver. Decision is a setback, but the timing points to a fixable problem.
The determination landed day 264 of the FDA's 270-day clock, leaving the agency no scope to seek further information and forcing a decision on what it had. Management confirms a single outstanding statistical point, not a safety or clinical issue, and says the letter invites resubmission.
We read this as a file closed on expiry rather than a technology rejected, and the 510(k) route stays open.
In any case, the regulatory and timing risks have increased, reflected in a valuation cut to A$1.10.
Warrants the negative market reaction but ultimately view the validity of the tool as intact, this reads as a setback in how the data was presented and assessed, not a failure of the underlying technology itself.
James Hardie Industries PLC (ASX: JHX)
The James Hardie share price is $39.58, up 1.2% today and up 31% over 12 months.
James Bills from Shaw and Partners has a hold rating on this ASX 200 materials share.
He said (courtesy The Bull):
James Hardie remains a global leader in fibre cement building products and continues to benefit from strong brand recognition and market share gains, particularly in North America.
The company has delivered solid long term earnings growth through product innovation and operational efficiency.
However, housing activity remains sensitive to interest rate movements and broader economic conditions, creating some uncertainty around demand in the near term. Given its strong fundamentals and balanced valuation, a hold recommendation remains appropriate.
Woolworths Group Ltd (ASX: WOW)
The Woolworths share price is $39, up 0.6% today and up 39% over 12 months.
Bills has a sell rating on this ASX 200 consumer staples share.
He explained:
The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range.
While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price.
Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels.
Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.
