If you are looking to bring your portfolio to life, then it could be worth considering the ASX healthcare stock in this article.
That's because if Bell Potter is on the money with its recommendation, it could double in value between now and this time next year.
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Which ASX stock?
The stock that has caught the eye of Bell Potter is Aroa Biosurgery Ltd (ASX: ARX).
It is a commercial stage medical device company that operates within the wound care and soft tissue reconstruction sector.
Bell Potter highlights that the company has reported positive peer-reviewed results from its published Symphony randomised controlled trial in diabetic foot ulcers (DFUs). It said:
Symphony plus standard of care (SOC) increased complete wound closure at 12 weeks to 45.6% versus 23.6% with SOC alone, a 22pp benefit (p=0.008). The benefit importantly remained significant after adjustment for baseline wound area and ulcer recurrence, with consistent per-protocol findings. Estimated mean time to closure was also 7.8 days shorter at 67.4 days. These results establish substantive clinical evidence expected to support Symphony's outpatient adoption in both chronic and complex wounds.
The broker believes these results and economics reshape the opportunity. It adds:
The results arrive as reimbursement reform increases scrutiny of both clinical evidence and treatment economics. Provider uncertainty and wastage restrictions are disrupting the market, creating opportunities in the institutional channels that ARX is targeting.
Symphony's competitive pricing, shelf-stable format and range of SKUs support its positioning as provider margins, logistics and wound-matched sizing become increasingly important to product selection.
Big potential returns
According to the note, the broker has retained its buy rating and $1.09 price target on the ASX stock.
Based on its current share price of 50.5 cents, this implies potential upside of approximately 115% for investors over the next 12 months.
Commenting on its investment thesis and valuation, Bell Potter said:
Myriad remains the established near term growth driver, while Symphony provides access to a significant outpatient opportunity supported by a stronger clinical evidence base. Against an estimated US$1bn addressable market, our Symphony revenue forecasts remain modest at NZ$1.5m in FY27 and NZ$2.0m thereafter, leaving meaningful upside as adoption gains traction.
ARX continues to screen attractively on 1.6x consensus CY26 EV/revenue, a ~40% discount to the broader peer average and ~61% to domestic peers. We see scope for this gap to narrow through continued direct sales growth, with the November H1 result the next catalyst in assessing commercial progress. We maintain our Buy rating and $1.09 target price.
