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.

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.

The post Top broker says this ASX stock could rise 115% appeared first on The Motley Fool Australia.

That's because the team at Morgans believes they could rise by 48% to 90% over the next 12 months. 

Here's what the broker is recommending:

Aroa Biosurgery Ltd (ASX: ARX)

Morgans is feeling even more positive about this ASX share following the release of interim results for the MASTRR Registry.

In response, the broker has retained its buy rating on the medical device company's shares with a 79 cents price target. This implies potential upside of approximately 48% for investors over the next 12 months. It commented:

ARX has reported positive interim results from the MASTRR Registry showing low infection rates which we expect will support greater surgeon adoption. We sit towards the upper end of the FY27 guidance which has revenue forecast to grow at 18% (mid-point). We have made no changes to forecasts or target price. The share price continues to languish despite operational and clinical progress; with 45% upside to our target price, we think ARX is undervalued. Buy.

EchoIQ Ltd (ASX: EIQ)

This medical device company's shares have crashed deep into the red this week following a disappointing US FDA update.

While many investors have decided to hit the sell button, Morgans thinks they should be sticking with the company. 

As a result, it has retained its buy rating with a reduced price target of $1.10. This implies potential upside of approximately 95% for investors. It 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.

The post Morgans says these ASX shares could return 48% to 95% appeared first on The Motley Fool Australia.

Major improvements in stocks, including CSL Ltd (ASX: CSL), Ramsay Healthcare Ltd (ASX: RHC), and Cochlear Ltd (ASX: COH) bolstered the sector, following weakness earlier in the year.

Where does the broker see good value now?

Bell Potter has selected seven ASX healthcare shares as its key picks going forward, some of which it says could more than double in value.

One of these is Clarity Pharmaceuticals Ltd (ASX: CU6), which Bell Potter said could have some big news shortly.

The broker said:

For companies with significant clinical readouts over the near-term, it's hard to go past CU6 which is expected to deliver topline data from its two PSMA imaging Phase 3 trials in early CY27. The data from these studies should support a New Drug Application for 64Cu SAR bis PSMA in CY27. Once approved, we expect 64Cu SAR bisPSMA will enter the ~US$3b PSMA imaging market with a highly differentiated label claim to the incumbents.

Bell Potter has a speculative buy rating on the shares with a $6.40 price target.

The broker is also predicting solid share price gains for Mesoblast Ltd (ASX: MSB), which has been preforming well since gaining FDA approval for its drug Ryoncil in late 2024.

Bell Potter said Mesoblast was also progressing a lower back pain drug, with a large potential market.

Its price target for Mesoblast is $4.45.

Other companies which are scaling up in the US are Lumos Diagnostic Holdings Ltd (ASX: LDX) and Aroa Biosurgery Ltd (ASX: ARX).

Bell Potter said regarding these two:

LDX is rapidly scaling its commercial channels ahead of its first flu season in North America, while ARX is driving strong direct growth through Myriad and positioning to capitalise on disruption across the outpatient chronic wound market with Symphony. Both remain well positioned in sizeable US growth opportunities.

Bell Potter has a price target of 25 cents on Lumos and $1.09 on Aroa.

The broker also likes Vitrafy Life Sciences Ltd (ASX: VFY), which it said "has recently emerged with the potential to develop dominant positions across various large cryopreservation markets, but particularly in the blood products segment''.

Bell Potter has a price target of $5.15 on Vitrafy.

The broker said Cogstate Ltd (ASX: CGS) delivered "stellar returns" in FY26, "following significant contract wins across an increasingly diverse range of clinical indications and channel partners''.

It has a price target of $3.70 on Cogstate.

And lastly, Bell Potter is also bullish on Pro Medicus Ltd (ASX: PME), which it said "continues to win ever more business in the US''.

Bell Potter has a price target of $226 on Pro Medicus.

The post 7 ASX healthcare stock picks from Bell Potter appeared first on The Motley Fool Australia.

That's because listed below is one ASX share that Bell Potter believes could rocket higher over the next 12 months.

Which ASX All Ords share?

The share 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 was pleased to see that the company has successfully completed a prospective randomised controlled trial for Symphony in diabetic foot ulcers.

It highlights that the "preliminary results [are] indicating the primary endpoint of complete wound closure at 12 weeks was met."

This is good news because the Symphony product could have a billion-dollar market opportunity. It commented:

Although the full dataset remains due in Q3 FY27, the readout provides important clinical validation ahead of Symphony's commercial launch and supports its positioning under a tougher coverage framework. That early validation arrives as the CY26 CMS reimbursement reset continues to disrupt the US skin substitute market. 

The new US$127.14/cm² flat rate has compressed the elevated pricing underpinning many legacy products, with Organogenesis and MiMedx both reporting wound-care revenue declines of at least 60% in Q1 CY26 and consensus expecting pressure to persist through the year. We estimate market size in outpatient care at greater than US$1b.

Time to buy

According to the note, the broker has retained its buy rating and $1.09 price target on the ASX All Ords share. Based on its current share price of 58.5 cents, this implies potential upside of 86% for investors over the next 12 months.

Touching on its outlook and investment thesis, Bell Potter said:

Beyond the clinical readouts, 2H CY26 should bring further clarity on the reimbursement environment. Key watchpoints should include the final PFS and OPPS rules following CMS's proposal to retain the current flat-rate methodology for CY27, while any revised DFU/VLU LCDs could further raise the evidence threshold and narrow the reimbursable product set. 

Investment thesis: Buy; TP $1.09 (unchanged) The Myriad growth story remains intact and the outlook for Symphony revenues continues to improve. We make no changes to earnings and maintain our Buy rating and PT of $1.09.

This could make Aroa Biosurgery worth considering if you are looking for exposure to the healthcare sector.

The post Which ASX All Ords share could rocket 90%? appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a positive start to the week following a solid session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.5% higher. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.4%, and the Nasdaq pushed 0.3% higher.

Oil prices ease

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.95% to US$71.41 a barrel and the Brent crude oil price was down 0.4% to US$76.01 a barrel. This couldn't stop oil prices from recording a decent weekly gain amid rising tensions in the Middle East.

Buy Mesoblast shares

Mesoblast Ltd (ASX: MSB) shares could be in the buy zone according to Bell Potter. This morning, the broker has essentially upgraded the biotechnology company's shares to a buy rating (from speculative buy) with a $4.45 price target. This is almost double its current share price. It said: "MSB is expected to commence submission of the various modules of the Biological Licence Application for Rexlemestrocel-L in heart failure and commence recruitment of the adult study in GvHD (for Ryoncil). We expect MSB will also engage in preliminary discussions with distributors for Rexlemestrocel-L in the chronic lower back pain indication, ahead of the phase 3 readout in mid CY27. Investment thesis: TP $4.45 (unchanged) There are no changes to earnings and we retain our $4.45 target price and Buy rating. As MSB is generating strong revenue growth the Speculative risk rating is no longer warranted."

Gold price falls

It could be a soft start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price softened on Friday night. According to CNBC, the gold futures price was down 0.65% to US$4,113.7 an ounce. Increased interest rate hike bets have been weighing on the precious metal.

Buy Aroa shares

Bell Potter also sees major upside in Aroa Biosurgery Ltd (ASX: ARX) shares at current levels. This morning, the broker has retained its buy rating and $1.09 price target on the biotechnology company's shares. It commented: "Beyond the clinical readouts, 2H CY26 should bring further clarity on the reimbursement environment. Key watchpoints should include the final PFS and OPPS rules following CMS's proposal to retain the current flat-rate methodology for CY27, while any revised DFU/VLU LCDs could further raise the evidence threshold and narrow the reimbursable product set."

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

That's because the team at Morgans believes they could rise 9% to 27%. Here's what the broker is saying:

Aroa Biosurgery Ltd (ASX: ARX)

This medical device company delivered an FY 2026 result that was in line with expectations.

In response, the broker has retained its buy rating on Aroa Biosurgery's shares with an improved price target of 79 cents. Based on its current share price of 62 cents, this implies potential upside of 27%. It said:

ARX posted its FY26 result which was in line with the recently released trading update and our forecast. Higher sales and marketing spend in FY27 results in a flat EBITDA, however the benefits of this investment will be seen in FY28/29 where a significant step up is expected. As a result of changes to forecasts and the roll forward of our model, our target price increases to A$0.79 (from $0.77). We maintain a BUY recommendation.

Goodman Group (ASX: GMG)

Another ASX share that Morgans is positive on is industrial property company Goodman.

In response to its quarterly update, the broker has retained its buy rating with a $36.00 price target. Based on the current Goodman share price of $29.86, this implies potential upside of 20% for investors. Morgans commented:

Operationally the update was mixed, with pre-committed share, production rate and Yield On Cost (YOC) all relatively flat hoh. The structurally important note was management's view that industry DC capex requirements likely exceed global capital market funding capacity, a backdrop that favours those with secured power, sites and locked-in capital partners. FY26 OEPSg guided to 'at least 9%' (prior 9%; MorgansF 9.2%; Consensus 9.8%), marginally up.

We partially reverse the discretionary discount applied in our March sector update (-10% to -5%) reflecting growing conviction in the capital-scarcity moat and peer pre-commit validation, noting that GMG's own leading indicators have not yet inflected. BUY reiterated; TP to A$36.00/sh.

Infratil Ltd (ASX: IFT)

A third ASX share that Morgans has been looking at is infrastructure investment company Infratil.

The broker was pleased with its FY 2026 results, noting that earnings grew quicker than expected.

As a result, the broker has retained its accumulate rating with an increased price target of $13.80. Based on its current share price, this implies potential upside of approximately 9%.

Commenting on the company, Morgans said:

IFT's FY26 result was strong with net proportionate EBITDA from continuing operations lifting ~11% YoY and coming in 4% ahead of our forecast. Proportionate capex was above our forecast. It lifted 17% YoY and is set to lift ~57% in FY27 as management recycles capital to reinvest in IFT's key growth assets. Portfolio Asset Value lifted 13% YoY to NZ$20.6bn, in line with our expectations.

IFT declared a 13.65c final dividend, in line with earlier guidance. We retain our ACCUMULATE recommendation and lift our Target Price ~22% to $13.80, following CDC's largest ever contract win.

The post Morgans says these ASX shares can rise 9% to 27% appeared first on The Motley Fool Australia.

Aroa is a commercial-stage medical device company operating in the complex wound care and soft tissue reconstruction sector. It provides biologic medical devices through its AROA-ECM (Extracellular Matrix) platform. 

The team at Bell Potter has been covering this ASX small-cap, and sees plenty of runway for growth thanks to strong FY26 results. 

What did the company report?

Yesterday, the ASX small-cap reported for FY 26: 

• NZ$104m in total revenue, exceeding guidance of NZ$92-$100m. It was 23% higher than FY25
• Normalised EBITDA of NZ$13m. This also exceeded guidance (NZ$5-$8m). 
• NZ$10.5m operating cash flow, which was up NZ$13.1m on FY25. 
• NZ$49.5 million in Myriad product revenue (54% growth on FY25).

Looking to FY27 guidance, the company expects total revenue of NZ$115-$125 million, representing 13-23% constant-currency growth. 

Direct sales are expected to grow 24-40%, led by continued Myriad momentum and supported by the launch of Symphony. 

Commenting on AROA's outlook for FY27, Managing Director and CEO Brian Ward said: 

FY26 was a successful year for AROA. Revenue grew 23% to NZ$103.9 million, driven by 54% growth in the Myriad portfolio, which was achieved with the same number of salespeople as the previous year, demonstrating strong operating leverage in the business. 

We expect Myriad momentum to continue, supported by deeper account penetration and higher productivity across the US direct sales team. Symphony's value proposition is well aligned with the changing reimbursement environment, and we believe it can become an important medium-term growth catalyst.

Bell Potter pleased with results 

Following these results, the team at Bell Potter provided updated guidance on this ASX small-cap. 

The broker said Aroa delivered a very strong FY26 result, mainly driven by rapid growth in Myriad sales, which they see as the core engine of the business. 

They believe this product can continue to grow at a solid double-digit rate because it is still at an early stage relative to a very large addressable market.

They also think the company is successfully shifting toward a more scalable business model by building out its direct sales force, which is reducing reliance on its US distribution partner and should support more consistent revenue growth going forward. 

In their view, this transition is likely to continue in FY27 as ARX expands sales capacity and re-launches its Symphony product.

However, Bell Potter also expects higher costs in the near term as the company invests more heavily in sales, marketing, and hiring to support growth. This leads them to slightly lower their profit (EBITDA) forecasts, even though they are not meaningfully changing their revenue expectations.

75% upside for this ASX small-cap 

Based on this guidance, the team at Bell Potter has placed an updated price target of $1.09 on this ASX small-cap. 

From yesterday's closing price of 62 cents per share, this indicates an upside potential of over 75%. 

The post The exciting ASX small-cap with potential 75% upside that I think every investor should be watching appeared first on The Motley Fool Australia.

However, some investors may choose to allocate some portion of their portfolio to these kinds of equities. 

If you are looking to monitor small caps, these two recently received updated guidance from brokers.

Here's what the experts are predicting. 

Aroa Biosurgery Ltd (ASX: ARX)

Aroa Biosurgery is a New Zealand-based biomedical company specialising in soft tissue regeneration. It develops, manufactures, and distributes medical and surgical products to improve the healing of complex wounds and soft tissue reconstruction.

The team at Morgans has provided updated guidance on the company following its FY26 preliminary results.

The broker highlighted that the company upgraded FY26 revenue and EBITDA guidance. 

We have revised our forecasts in line with guidance and increased our risk free rate (house view) which results in a small downgrade to our DCF valuation to A$0.77 (was $0.79). ARX will release its FY26 results on 26 May which will include FY27 guidance. The market will focus on revenue growth (MorgansF sit at 15%) and commentary around the continuing momentum with Myriad and SymphonyTM. We maintain our BUY recommendation with investor sentiment towards the name improving.

This price target from Morgans indicates an upside potential of 20%. 

Titomic Ltd (ASX: TTT)

Another ASX small cap drawing positive outlooks is Titomic. 

It's TKF technology provides the capabilities to produce commercially viable additively manufactured metal products that compete directly with traditional manufacturing methods. The company serves the aerospace, defence, sporting goods, medical, automotive, industrial equipment, construction, and marine sectors.

It recently received a reiterated buy recommendation from Bell Potter following its quarterly activities report.

The broker was impressed that during the March 2026 quarter, the company progressed on a number of process qualifications, commercial, and leadership fronts.

Looking ahead, TTT is engaged with several tier one aerospace and defence prime contractors for qualification ahead of the potential for initial production agreements. Applications include engine components, pressure vessel, heat-shielding for hypersonics and maintenance work.

Bell Potter is optimistic on this ASX small cap thanks to its competitive advantage. 

TTT's TKFtechnology has several advantages over traditional casting and forging manufacturing process including shorter lead-times and production cycles and improved material properties.

The broker currently has a 50-cent price target on this ASX small cap, indicating an upside potential of more than 80% from the current share price, which is hovering around 27 cents per share.

The post Are these ASX small caps too cheap to ignore? appeared first on The Motley Fool Australia.

The high-flying stock in question is Aroa Biosurgery Ltd (ASX: ARX).

Shares in the soft-tissue regeneration company closed yesterday trading for 55 cents. At time of writing, shares are changing hands for 65 cents apiece, up 18.2%.

Here's what's piquing investor interest today.

ASX All Ords healthcare share rockets on guidance beat

Investors are bidding up Aroa shares today following the release of the company's preliminary full year results (FY 2026). Aroa's financial year runs through to 31 March.

The ASX All Ords healthcare share reported full year revenue of NZ$104 million in actual terms. On a constant currency basis, FY 2026 revenue came in at NZ$101 million.

That sees revenue coming in above Aroa's full year guidance range of NZ$92 million to NZ$100 million (constant currency). It's also 21% higher than FY 2025 total revenue.

Management credited the strong growth to a 52% year-on-year boost (constant currency) in sales in its Myriad portfolio, which was stronger than they had expected. Myriad is the company's propietary biological surgical implant used to regenerate soft tissue.

On the earnings front, the ASX All Ords healthcare share expects FY 2026 normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range of NZ$11million to NZ$12 million on an actual basis. Or NZ$10 million to NZ$11 million on a constant currency basis.

That also materially exceeds Aroa's FY 2026 constant currency earnings guidance of NZ$5 million to NZ$8 million.

The earnings boost was primarily driven by the increased revenue. The company noted that changes in the timing of project related costs, particularly its Enivo and TelaBio development projects, also had some impact. Aroa now expects these costs to be realised in FY 2027.

In other core financial metrics, Aroa has a positive net cash flow of NZ$5 million over the full year.

And on the balance sheet, the company held NZ$27 million at 31 March, up from NZ$23 million at 30 September.

What did Aroa management say?

Commenting on the preliminary results sending the ASX All Ords healthcare share surging today, Aroa CEO Brian Ward said:

We are delighted with the strong performance reflected in these preliminary results, driven by continued growth in the Myriad portfolio. We look forward to providing further details on the release of our audited full year results at the end of May.

Aroa is scheduled to release its fully audited FY 2026 results on 26 May.

The post Guess which ASX All Ords healthcare share is rocketing 18% in Thursday's sinking market appeared first on The Motley Fool Australia.

It is a New Zealand-based biomedical company specialising in soft tissue regeneration. It develops, manufactures, and distributes medical and surgical products.

The company's principal market is the United States, where it markets four key products: 

• Endoform
• Myriad
• OviTex
• Symphony

These products improve healing in complex wounds and soft tissue reconstruction. 

It appears Bell Potter sees significant upside in this ASX small-cap stock on the back of positive 1H26 earnings. 

The broker has a buy recommendation and optimistic price target, suggesting more than 20% upside. 

What did the company report?

On Tuesday, Aroa Biosurgery released H1 FY26 Results. 

This included: 

• Total revenue of NZ$44.9 million (14% growth on H1 FY25)
• NZ$19.7 million in Myriad product revenue (33% growth on H1 FY25)
• NZ$19.2 million in total OviTex/OviTex PRSi product revenue (4% growth on FY25)
• Product gross margin of 85%
• Normalised EBITDA profit of NZ$1.8 million (up from NZ$1.5 million normalised EBITDA loss in H1 FY25)

FY26 Outlook

• Revenue of NZ$92-$100 million (10%-20% growth on FY25 on a constant currency basis)
• Normalised EBITDA of NZ$5-$8 million (19%-90% growth on FY25)

Commenting on AROA's H1 FY26 results, Managing Director and CEO Brian Ward said:

We are very pleased with our first half performance, delivering NZ$44.9 million in total revenue, underpinned by strong Myriad growth, and our fourth consecutive quarter of positive operating cash flow.

We reaffirm our FY26 guidance of NZ$92–100 million in revenue and NZ$5–8 million normalised EBITDA. Looking ahead to the second half of FY26, we expect new clinical publications to further validate AROA ECM's efficacy and strengthen its commercial uptake.

Reason for optimism for this ASX small-cap stock

Markets reacted positively to the results of Aroa Biosurgery yesterday. 

The stock price closed almost 8% higher at $0.68. 

Following the results, Bell Potter said ARX's balance sheet continues to strengthen. 

We are confident regarding the ongoing performance of the Myriad sales team, while conviction levels surrounding the Tela Bio group are lower. Fortunately 2H is traditionally the stronger sales period for Tela.

The broker has a buy recommendation on this ASX small-cap stock and a price target of $0.85. 

From yesterday's closing price, this indicates an upside of 25%. 

Elsewhere, TradingView has a 12-month price target of $0.845 and online brokerage platform Selfwealth lists the ASX small-cap stock as undervalued by approximately 30%.

The post This ASX small-cap stock could be set to rise 25% appeared first on The Motley Fool Australia.

That's because analysts at Bell Potter have named the two small cap ASX shares listed below as buys with potential to deliver outsized returns.

Let's see what the broker is saying about them:

Aroa Biosurgery Ltd (ASX: ARX)

The first small cap ASX share that Bell Potter is tipping as a buy is Aroa Biosurgery.

It is a commercial stage medical device company that operates within the complex wound care and soft tissue reconstruction sector.

The broker highlights that Aroa Biosurgery is well-placed to deliver earnings growth and strong free cash flow generation in the coming years. This is despite a product launch delay. It said:

The FY26 revenue forecast is reduced from $109m to $103m – modestly above the top end of guidance range. FY27 revenues also reduced due to the delay in launch of the Symphony product. We also expect FY26 EBITDA at the upper end of guidance. Over the forecast period we expect meaningful growth in earnings and FCF driven by leverage to the 85% gross margin. ARX is currently trading on an EV/FY25 revenue multiple of ~1.9x relative to our valuation benchmark of 3.0x.

Bell Potter has a buy rating and 85 cents price target on the company's shares. Based on its current share price of 51 cents, this suggests that upside of 66% is possible between now and this time next years.

Integral Diagnostics Ltd (ASX: IDX)

Another small cap ASX share that could be a buy according to the broker is Integral Diagnostics.

It is a leading diagnostic imaging company that merged with Capitol Health. It operates 151 clinics throughout Australia, offering a range of imaging modalities through its clinics.

Bell Potter believes that the small cap could be positioned for a period of double-digit earnings growth. It explains:

We have adjusted our blended valuation for the rebased earnings and given the proximity to the FY25 reporting season, rolled forward our DCF and EBITDA multiple valuations to arrive at a c.1.7% upgrade to our TP to $3.65/sh, or c.50% upside to the current share price. We think IDX is emerging with several tailwinds that could support double-digit earnings growth and support a re-rating of the company's valuation.

Bell Potter has a buy rating and $3.65 price target on its shares. This implies potential upside of 50% for investors over the next 12 months.

The post These small cap ASX shares could rise 50% to 65% appeared first on The Motley Fool Australia.

In afternoon trade, the benchmark ASX 200 index is up 0.25%.

While this is positive, it pales in comparison to what one small cap ASX share is recording today.

Which small cap ASX share?

The small cap in question is Aroa Biosurgery Ltd (ASX: ARX). It is a soft-tissue regeneration company with a mission to unlock regenerative healing for everybody.

It develops, manufactures, sells, and distributes medical and surgical products to improve healing in complex wounds and soft tissue reconstruction.

At the time of writing, its shares are up 10% to 52 cents after investors responded positively to the release of its full year results.

According to the release, the company recorded a 23% increase in total revenue to NZ$84.7 million. This was ahead of its guidance range of NZ$81 million to NZ$84 million.

The drivers of its growth were its Myriad product and OviTex product. Myriad product revenue was up 38% to NZ$32.3 million and OviTex product revenue was up 22% to NZ$39.7 million.

And with a product gross margin of 86%, the small cap ASX share posted normalised EBITDA of NZ$4.2 million for the year. This is up from a NZ$3.2 million loss a year ago. Once again, this exceeds its guidance for FY 2025, which was NZ$2 million to NZ$4 million.

More good news is that Aroa Biosurgery achieved positive operating cash flow the second half. This led to it finishing the period with a cash balance of NZ$22 million and no debt.

Outlook

Also likely to be going down well with the market is management's guidance for FY 2026.

It is expecting its strong form to continue and is forecasting revenue of NZ$92 million to NZ$100 million and normalised EBITDA of NZ$5 million to NZ$8 million. This represents growth of 10% to 20% on the top line and 19% to 90% for its earnings.

Commenting on the year ahead, the small cap ASX share's managing director and CEO, Brian Ward, said:

FY25 marks a significant financial milestone – our first year of normalised EBITDA profitability since listing. Looking ahead, we are increasingly confident about our ability to deliver strong top-line growth and enhanced profitability in FY26 and beyond. Myriad clearly demonstrates that we are delivering on our vision to unlock regenerative healing for everybody.

The post Which small cap ASX share is jumping 10% on strong results appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 3% to $2.31. This follows the release of a first half trading update from the footwear retailer this morning. According to the release, the company expects to report group EBIT of approximately $80 million for the half. This includes a positive net impact of $3.3 million relating to non-recurring items and will be up from $72.4 million in the prior corresponding period. Total group owned sales were up 4.6% for the half, with like for like sales up 2.9%. However, it notes that its like for like sales growth softened late in the year.

Aroa Biosurgery Ltd (ASX: ARX)

The Aroa Biosurgery share price is down 21% to 63.5 cents. Investors have been selling this medical device company's shares following the release of its quarterly update. Aroa Biosurgery reported cash receipts from customers of NZ$19.5 million, which was in line with its expectations. Looking ahead, management is guiding to total revenue of NZ$81 million to NZ$84 million in FY 2025. This represents a 17% to 22% increase on FY 2024's revenue. A normalised EBITDA profit of NZ$2 million to NZ$4 million is also expected.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down 47% to 20 cents. This follows the release of a disappointing half year update from the video game developer. Playside Studios reported a 21% decline in revenue to $28.5 million and an EBITDA loss of $2.8 million for the half. The latter is down from a $12.2 million EBITDA profit a year ago. Management has also downgraded its guidance for FY 2025. Revenue in FY 2025 is now expected to be $50 million to $54 million (previously $62 million to $68 million) and EBITDA is expected to be a loss of $6 million to $10 million (previously a profit of $0 million to $5 million).

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down 22% to $22.29. This has been driven by the retail conglomerate's shares going ex-distribution today. As part of the merger of its Apparel Brands business with Myer Holdings Ltd (ASX: MYR), the company has been issued 890.5 million new shares in the department store operator. Together with its existing shareholding, Premier Investments is distributing a total of 1,151.5 million Myer shares to eligible shareholders through an in-specie distribution. This will take place on 6 February 2025.

The post Why Accent, Aroa, Playside, and Premier Investments shares are tumbling today appeared first on The Motley Fool Australia.

That's because the potential returns on offer at the small end of the market can be material. Though, it is always worth remembering that this greater reward brings greater risk.

With that in mind, let's take a look at two small cap ASX stocks that have recently been named as buys and tipped to rise strongly from current levels. Here's what you need to know about them:

Aroa Biosurgery Ltd (ASX: ARX)

This morning, Bell Potter reiterated its buy rating on small cap ASX stock Aroa Biosurgery.

It is a wound repair specialist company that uses a decellularised extra cellular matrix derived from ovine (sheep) gut.

Bell Potter has been impressed with the company's performance in FY 2024 and expects more of the same in FY 2025. Despite this, it trades at a discount to peers. The broker explains:

ARX is likely to deliver strong double digit percentage growth in FY25 and it is trading at a heavy discount to peers. Other than earnings, important catalysts include the headline data from pending scientific papers regarding the ongoing MASTRR study for Myriad in the treatment of trauma, limb salvage and colorectal surgery. The investment in these studies has been significant and we believe will have a long shelf life. The sales force is now well established and poised to take advantage of these important data releases.

Bell Potter has put a buy rating and 90 cents price target on its shares. This suggests that upside of 30% is possible over the next 12 months.

Camplify Holdings Ltd (ASX: CHL)

A second ASX small cap stock that has been given the thumbs up by analysts this month is Camplify.

It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers. It has operations in Australia, New Zealand, Spain, the UK, Germany, Austria and Netherlands.

Morgans continues to believe that the market is thoroughly undervaluing the company's shares. It likes Camplify due to its positive long term growth outlook, which is being underpinned by its large opportunity both at home and abroad. The broker recently said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has just put an add rating and $2.10 price target on its shares. This is more than double where they trade today.

The post 2 small cap ASX stocks with big price targets appeared first on The Motley Fool Australia.

But which small caps could be top options for investors in September? Let's take a look at two that could be worth considering:

Aroa Biosurgery Ltd (ASX: ARX)

Bell Potter thinks that Aroa Biosurgery could be a small cap ASX stock to buy.

It is a medical device company focused on wound repair. It uses a decellularised extra cellular matrix derived from ovine (sheep) gut for wound healing and soft tissue reconstruction.

The broker believes the company could be well-placed for growth over the coming years thanks to growing demand for its technology. It said:

The Myriad product achieved the highest rate of revenue growth in FY24. It is applied in the surgical setting to provide a substrate for regeneration of soft tissue and for reconstructive surgery. In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Bell Potter has a buy rating and 90 cents price target on its shares. This implies potential upside of approximately 70% for investors from current levels.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap stock that has been given the thumbs up Camplify.

It operates one of the world's leading peer-to-peer digital marketplace platforms, connecting recreational vehicle (RV) owners to hirers. It has operations in Australia, New Zealand, Spain, the UK, Germany, Austria and Netherlands.

Analysts at Morgans are feeling very positive about the company's long term growth outlook thanks to opportunity both at home and abroad. They explain:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and $2.55 price target on its shares. This is more than double where its shares are currently trading.

The post Experts name 2 small cap ASX stocks to buy for big returns appeared first on The Motley Fool Australia.

After all, the potential returns on offer at the small end of the market can be significant. Though, it is always worth remembering with this greater reward, comes greater risk.

With that in mind, let's take a look at three small cap ASX stocks that have been tipped to rise strongly from current levels. Here's what you need to know about them:

Aroa Biosurgery Ltd (ASX: ARX)

Analysts at Bell Potter think that Aroa Biosurgery could be a small cap ASX stock to buy right now.

It is a wound repair specialist company that uses a decellularised extra cellular matrix derived from ovine (sheep) gut.

Bell Potter has been impressed with the company's performance in FY 2024 and expects more of the same in the coming years. It explains:

The Myriad product achieved the highest rate of revenue growth in FY24. It is applied in the surgical setting to provide a substrate for regeneration of soft tissue and for reconstructive surgery. In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Bell Potter has a buy rating and 90 cents price target on its shares. This suggests that upside of 42% is possible over the next 12 months.

Camplify Holdings Ltd (ASX: CHL)

Another ASX small cap share that has been named as a buy is Camplify. It is the number one player in ANZ in the peer-to-peer RV rental space.

Morgans is a fan of the company due to its huge growth opportunity at home and abroad. It explains:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

The broker has an add rating and $2.55 price target on its shares. This implies potential upside of over 100% for investors.

Mach7 Technologies Ltd (ASX: M7T)

A third small cap ASX share that has been named as a buy is Mach7. It is an enterprise image management systems provider.

Morgans is feeling positive about the company's outlook and is forecasting strong revenue growth in the coming years. It said:

Mach7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker has an add rating and a $1.56 price target on its shares. This suggests that its shares could more than double in value from current levels.

The post 3 small cap ASX stocks that could rise 40% to 100%+ appeared first on The Motley Fool Australia.

They have just been tipped as Bell Potter's top healthcare stocks to buy now:

Aroa Biosurgery Ltd (ASX: ARX)

Aroa Biosurgery describes itself as a soft-tissue regeneration company committed to unlocking regenerative healing for everybody.

Bell Potter is feeling very positive about the company's outlook and has put a buy rating and 90 cents price target on its shares. It is expecting the ASX healthcare stock's strong top line growth to continue in FY 2025 and FY 2026. It said:

In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.

Cyclopharm Ltd (ASX: CYC)

Bell Potter is also bullish on this global radiopharmaceutical company which has a focus on pulmonary care. Especially given its strong balance sheet following a recent capital raising.

The broker currently has a buy rating and $3.40 price target on the ASX healthcare stock. It said:

Cyclopharm recently completed a $24m capital raise with funds to provide working capital to support the expanding revenue base in the US. Since receiving FDA approval for Technegas in the US in September 2023, CYC has notched up numerous firsts including contract signings and first revenues earned. […] The company estimates the US market for Technegas at US$180m annually inclusive of US$90m being the initial market for diagnosis of pulmonary embolism (PE) which it believes it can win within 5 to 7 years from launch. The second stage of the market also relates to PE where the company believes it can win market share in those patients currently diagnosed via CT.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, another radiopharmaceutical company that could be a buy according to Bell Potter is Telix. It has a buy rating and $19.00 price target on its shares.

Bell Potter likes the company due to its revenue-generating Illuccix product, as well as its promising product pipeline. The broker explains:

The fundamental drivers of value remain firmly in place, including: revenues from the sale of Illuccix continue to grow; recently completed submission of the Biological license application for Zircaix in early June; and additional catalysts including submission of the New Drug Application for Pixclara, commencement of enrolment in the prostate cancer therapy and initial data from the STARLITE trial.

The post Bell Potter names the best ASX healthcare stocks to buy in FY25 appeared first on The Motley Fool Australia.

That's because analysts at Bell Potter believe the small cap ASX stock could rise materially from current levels.

What is this small cap ASX stock?

Aroa Biosurgery is a soft-tissue regeneration company. It states that it is committed to "unlocking regenerative healing for everybody."

It develops, manufactures, sells, and distributes medical and surgical products to improve healing in complex wounds and soft tissue reconstruction. The small cap ASX stock's products are developed from a proprietary AROA ECM technology platform. It is a novel extracellular matrix biomaterial derived from ovine forestomach.

'A potentially transformational year'

Bell Potter believes that FY 2025 could be a transformational year for the company that could see its first profit and free cash flow. It said:

FY25 is a potentially transformational year for ARX with the likelihood of a maiden profit and positive free cash flows. We believe these have been the drivers of the resurgence in market value of the stock, spurned on by the positive revenue and earnings guidance provided at the recent full year update (for FY24).

Another positive is that there could soon be some clinical trial data available that the broker feels could be supportive of sales. It adds:

While the ARX products appear widely regarded and have been the subject of literally dozens of published articles, the absence of gold standard data from randomised clinical trials is a gap. Recruitment of clinical trials in the key area of lower limb salvage and large trauma wounds is problematic, however, to this end the company has recently completed enrolment of its Myriad Augmented Soft Tissue Regeneration Registry (MASTRR) with clinical data expected to commence in late FY25.

In addition, there's potential for another clinical trial to open up the company to a market with a US$1 billion opportunity. The broker said:

In addition, ARX will shortly complete recruitment of its 120 patient randomised study in diabetic foot ulcer (DFU) patients investigating the wound healing properties of its Symphony product with headline data due in 2H FY25. Data from a recent retrospective real world study is highly supportive of the wound healing properties of Myriad in severe DFU cases. A successful outcome (which we believe is likely) may unlock the market in outpatient wound care for DFU's where TAM is estimated at >US$1.0bn.

Big return potential

This morning, Bell Potter has reiterated its buy rating and 90 cents price target on the small cap ASX stock.

Based on its current share price of 60 cents, this implies potential upside of 50% for investors over the next 12 months.

Overall, this could make Aroa Biosurgery worth a closer look. Particularly if you're looking for some small cap exposure.

The post Guess which small cap ASX stock could rise 50% in a 'transformational year' appeared first on The Motley Fool Australia.

But these three ASX healthcare shares are knocking it out of the park on this otherwise lacklustre day.

Here's why.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

ASX healthcare share Paradigm Biopharmaceuticals is up 5.88% to 27 cents per share at the time of writing. This follows the release of the company's quarterly activities report. Paradigm revealed a cash balance of $26.2 million as of 31 March, down from $33.5 million on 31 December. Paradigm spent $13.1 million on research and development, down from $27.06 million in the previous quarter. Net cash outflow for the quarter was $6.8 million, which was less than the $8 million to $11 million guidance. The company revised its cash outflow guidance for the June quarter to a range of $7 million to $10 million.

Paradigm shares are down 39% in the year to date. Over the past 12 months, the ASX healthcare share has fallen 72%.

Imugene Ltd (ASX: IMU)

The Imugene share price is up 2.44% to 8.4 cents per share at the time of writing. The clinical-stage immuno‐oncology company has also released its quarterly activities report today. The highlights include a cash or equivalents balance of $114.1 million. Net cash used in operating activities amounted to $25.2 million, with direct research and development costs accounting for 49% of costs.

This ASX healthcare share is down 23% in the year to date. Over the past 12 months, the Imugene share price has fallen 35%.

Aroa Biosurgery Ltd (ASX: ARX)

ASX healthcare share Aroa Biosurgery is currently up 3.09% to 50 cents per share. In its quarterly update today, Aroa reported strong cash receipts from customers of NZ$18 million, reflecting a continued increase in Myriad and OviTex / OviTex PRS sales. There were positive net cash inflows from operations of NZ$300,000, exceeding Q4 breakeven expectations. Net cash outflows from investing activities were down to NZ$700,000, reflecting continued planned investment into additional manufacturing plants and equipment. Completion is expected by Q3 FY25. Aroa booked a 71% reduction in quarterly cash burn to about NZ$1 million, ending the year with a strong closing cash balance of NZ$29.5 million.

Aroa shares are down 39% in the year to date. Over the past 12 months, the ASX healthcare share has dropped 53%.

ASX healthcare shares vs. ASX 200

ASX healthcare stocks have fallen 0.5% in the year to date and are down 5.1% over the past 12 months.

By comparison, the ASX 200 has risen 0.35% in 2023 so far and is up 4.4% over the past year.

The post 3 ASX healthcare shares outperforming on quarterly updates appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

29Metals Ltd (ASX: 29M)

The 29Metals share price is down 11% to 45 cents. Investors appear disappointed by the copper producer's quarterly update. 29Metals reported copper production of 5.2kt for the fourth quarter. This brought its full year production to 18.1kt. Management is guiding to copper production of 18kt to 22kt for 2024.

Aroa Biosurgery Ltd (ASX: ARX)

The Aroa Biosurgery share price is down 9% to 65.25 cents. This follows the release of the medical device company's quarterly update. That update revealed that management has reduced its FY 2024 total revenue guidance to between NZ$67 million and NZ$70 million. This has been driven by a decrease in expected revenue from TELA Bio due to a previous overestimation of Aroa's revenue share on inventory supplied and a delay to a joint product development project.

Mader Group Ltd (ASX: MAD)

The Mader share price is down 6% to $6.26. Investors have been selling this specialist technical services provider's shares despite the release of a solid quarterly update. Mader reported a 31% increase in total revenue to $189.3 million for the second quarter. In addition, the company has reaffirmed its confidence in "delivering FY24 revenue of at least $770m and NPAT of at least $50m."

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down 5% to $16.49. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded Netwealth's shares to an underperform rating with a $14.80 price target. It notes that Netwealth's quarterly update shows that its growth is continuing to moderate.

The post Why 29Metals, Aroa Biosurgery, Mader, and Netwealth shares are falling appeared first on The Motley Fool Australia.