Since January, it has risen over 500%. Fortunately for prospective investors, the team at Morgans believes this growth is set to continue. 

Company overview 

EchoIQ develops artificial intelligence for the cardiac diagnostics sector and supplies software to the health fund and insurance sectors. 

It operates through the Houston WeHave Software and Echo IQ segments. 

The Houston WeHave Software segment offers products and services across defence and other sectors. 

The Echo IQ segment focuses on developing artificial intelligence software that aids in predicting Aortic Stenosis heart condition.

In 2026, it has risen more than 500% as investors responded to a series of major commercial milestones. 

This includes its strategic partnership with Pro Medicus, new US market opportunities, a $110 million capital raising, and expanded access to a large cardiovascular imaging dataset to strengthen its AI-powered diagnostic platform. 

The rally has also been fuelled by optimism that these developments could accelerate US commercialisation and establish Echo IQ as a leading player in AI-driven cardiovascular diagnostics. 

Morgans upgrades its outlook 

Yesterday, the team at Morgans released an updated note on this ASX growth stock. 

It said Echo IQ has de-risked the commercial pathway since Morgan's initiation via a $110m placement at $1.45 per share and a new distribution partnership with Pro Medicus.

HF FDA clearance remains the single biggest re-rating catalyst from here, and while timing has slipped slightly from our expected 4Q26 window, we remain confident on approval and expect feedback imminently. We lift our discounted target price to $1.85 (from $1.30), driven by a medium-term acceleration of revenues. Speculative Buy rating retained.

From yesterday's closing price of $1.57, this indicates a further upside of nearly 18%. 

Elsewhere, Bell Potter recently tipped further upside for this ASX growth stock. 

It has a price target of $1.75 on Echo IQ shares. 

The broker said Echo IQ is making good progress by developing new products and securing long-term funding.

The broker warned, however, that the share price could experience volatility in coming months for several reasons:

• Revenue growth is expected to be modest over the next two years.
• The company will continue to spend significant cash.
• The share price will likely move based on announcements of new customer wins.

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These ASX shares have risen by over 500% and 125% respectively since the start of the year. 

This huge rise is difficult to ignore for growth investors, and experts have provided updated commentary on these soaring stocks. 

Here is what brokers are saying. 

Volatility expected for Echo IQ

A new report from Bell Potter has included updated guidance on Echo IQ shares. 

It is an ASX-listed medical technology company utilising proprietary, AI-driven software (the EchoSolv platform) to analyse echocardiographic data to aid clinicians in diagnosing serious conditions like aortic stenosis (AS) and left ventricular dysfunction more accurately.

Its share price has stormed higher in 2026 on the back of key US deals and AI development.

A note out of Bell Potter indicates it could experience some volatility moving forward. 

Looking on the positive side, the broker said Echo IQ is making good progress by developing new products and securing long-term funding.

A major positive was partnering with Pro Medicus Ltd (ASX: PME), which gives credibility to its EchoSolv platform.

However, winning new hospital and radiology customers in the US will take time – likely years, not months.

Price target increased 

Bell Potter has increased its price target to $1.75 per share (from $1.65).

The higher valuation reflects the stronger financial position after the capital raise.

However, the broker expects the share price to remain volatile because:

• Revenue growth is expected to be modest over the next two years.
• The company will continue to spend significant cash.
• The share price will likely move based on announcements of new customer wins.

The broker now has a speculative hold recommendation, and based on the updated price target, sees limited share price upside in the next 12 months. 

Last week, these ASX shares closed trading at $1.65. 

Sunrise Metals could keep rising 

Sunrise Metals shares have also rocketed higher in 2026. 

The company is focused on the development and application of ion-exchange technology for extracting valuable metals in the mining industry and for purifying and recycling wastewater.

Positive development updates have helped swing momentum to the positive side for these ASX materials shares. 

According to analyst views via TradingView, this could continue. 

These ASX shares closed last week trading at $17.75 per share. 

The average analyst forecast indicates Sunrise Metals shares could hit $20.00 per share in the next 12 months. 

From last week's closing price, this indicates a further 12% upside. 

The post What are experts saying about these red hot ASX shares? appeared first on The Motley Fool Australia.

Why are Echo IQ shares doing so well?

The company's shares have been performing strongly recently, shooting up by more than 50% when they announced a deal with fellow Australian imaging company Pro Medicus Ltd (ASX: PME).

The shares were trading at levels around $1.12 in mid-June but are now changing hands for $1.72, up 6.5% on Thursday.

Echo IQ said the new agreement with Advara Heartcare, "provides Echo IQ access to between 500,000 and 1,000,000 de-identified echocardiography studies and associated relevant clinical datasets''.

The company added:

The proposed dataset includes echocardiographic images together with associated clinical information, including de-identified patient demographics where applicable and appropriate, referral pathways, diagnostic findings and relevant clinical outcomes. Access to both large-scale imaging data and linked clinical datasets is expected to significantly enhance Echo IQ's ability to develop, train and validate future AI models across a broad range of cardiovascular conditions. The Company believes access to large, high-quality imaging datasets will become increasingly important as cardiovascular AI evolves from single-disease applications towards broader multi-condition diagnostic and predictive platforms. The Advara dataset is expected to materially strengthen the Company's future product development capabilities by providing a substantial imaging resources capable of further supporting algorithm development, model refinement and validation activities across multiple cardiovascular indications.

Strong deal flow good news for Echo IQ

The new agreement follows the Pro Medicus deal, under which the larger company agreed to invest an initial $10 million in Echo IQ through a subscription for secured convertible notes, with the right to subscribe for a further $10 million once Echo IQ had its EchoSolv HF product cleared by the US Food and Drug Administration.

EchoSolv HF is an AI-powered heart failure detection software.

Pro Medicus has also agreed to become a reseller for EchoSolv, "providing potential access to an extensive network of leading US health systems, academic medical centres and enterprise healthcare customers".

Echo IQ Chief Executive Officer Dustin Haines added at the time:

The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US.

Echo IQ also raised $110 million in new capital off the back of the Pro Medicus deal at $1.45 per share.

The post Up more than 550% in a year, why is this ASX biotech charging even higher? appeared first on The Motley Fool Australia.

As the above chart shows, it's actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?

Let's take a look at what analysts think of the business at its current valuation.

Expert views on Pro Medicus shares

According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.

Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.

Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.

The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.

Why is the Australian stock still attractive?

The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.

Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it's winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.

The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.

Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it's exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.

The company's earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec's forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.

Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.

The post Up 230% in 5 years! Is this still a top Australian stock to buy? appeared first on The Motley Fool Australia.

The ASX tech stock rocketed 30% to $1.62 after Pro Medicus Ltd (ASX: PME) announced a major investment in the company and a marketing agreement.

The market appears to see this investment as a stamp of approval from the medical imaging technology provider.

Pro Medicus' CEO, Dr Sam Hupert, commented:

In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ's technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ.

Is it too late to buy this ASX tech stock?

The good news is that Bell Potter doesn't believe it is too late to buy this high-flying share. However, the near-term upside from here could be limited.

According to a note, the broker has initiated coverage on the cardiology-focused medical technology company's shares with a speculative buy rating and $1.65 price target. This is just a fraction higher than where its shares currently trade.

Bell Potter believes there is a major unmet need that the ASX tech stock could help with. It explains:

The major unmet need in this patient population are those currently asymptomatic (i.e. without obvious symptoms) with severe disease. The vast majority proceed to symptomatic disease within two years and become candidates for aortic value replacement. Recent clinical data has proven that early intervention drives a significant survival benefit.

The data suggest that the majority of these patients are not identified using current screening methods and fewer still receive treatment. Finally, this recent clinical data has been recognised by CMS which recently proposed an update to its National Coverage Determination to extend reimbursement for AS patients with asymptomatic disease.

Commenting on its speculative buy rating, Bell Potter adds:

We commence coverage with a Buy (Speculative) recommendation and valuation of $1.65. We expect EIQ expand rapidly over the short to medium term as healthcare operators and payers recognise the benefit of these diagnostic aides in helping to minimise the long term cost of heart failure to US healthcare.

Overall, this could make it one to watch in the near term.

The post Is this exciting ASX tech stock a buy after its massive news? appeared first on The Motley Fool Australia.

The company has signed a binding Heads of Agreement with Echo IQ Ltd (ASX: EIQ), a Sydney-based AI cardiology company, to expand its AI-driven cardiology solutions and broaden its commercial reach in the United States.

On paper, this is a small transaction for a company with a market capitalisation in the tens of billions.

The potential that lies underneath is what deserves attention.

What the Pro Medicus AI cardiology deal involves

Pro Medicus will make an initial $10 million investment in Echo IQ through secured convertible notes. The company retains the option to invest a further $10 million once Echo IQ's heart failure algorithm, EchoSolv HF, receives clearance from the US Food and Drug Administration.

Pro Medicus also becomes the proposed US reseller of Echo IQ's EchoSolv product suite. This should plug an AI-powered cardiac diagnostic tool directly into the same hospital network that already runs its Visage 7 imaging platform.

CEO Sam Hupert framed the move as part of a deliberate strategy, stating:

In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ's technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and third party algorithms such as Echo-IQ.

Definitive legal documentation is still being finalised, with completion expected within the coming weeks.

Why this deal matters more than its size suggests

Pro Medicus has spent the past 18 months landing landmark Full Stack contracts with major US health systems. The company's cardiology modules are increasingly attached at the point of first sale.

Bolting Echo IQ's AI diagnostic layer directly onto Pro Medicus' existing distribution network gives Pro Medicus a capability it does not have to build in-house, sitting natively alongside the workflow its customers already use every day.

This deal positions Pro Medicus as acquiring a low-cost option on AI-led cardiology imaging without diluting its own research and development.

The more pessimistic view states that every legacy imaging vendor in North America is now racing to add its own AI partners. This may narrow the window in which a reseller deal like this one carries exclusive competitive value.

What it means for Pro Medicus shares

Pro Medicus shares were up 3.5% to $185.30 on the news, adding to a rally that has lifted the stock roughly 50% since mid-May. Year-to-date, however, shares still remain down.

This partial recovery follows a difficult few months for the stock. This downturn was driven by broader fears that AI would disrupt rather than enhance imaging software businesses.

This deal is a direct rebuttal to that fear. Pro Medicus is not being disrupted by AI cardiology tools. Rather, it is bringing them in-house and reselling them to its own customer base.

What it means for Echo IQ shareholders

The reaction in Echo IQ shares has been even more dramatic.

Echo IQ shares jumped 28% to a record high of $1.58.

Echo IQ CEO Dustin Haines called the deal:

A transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US.

For a small-cap AI company, validation and distribution from one of Australia's most successful healthcare technology exporters is about as strong an endorsement as the market could ask for.

Foolish takeaway

The dollar value of this deal is immaterial to Pro Medicus's balance sheet.

The strategic message is not.

By investing in and reselling third-party AI cardiology technology rather than treating it as a competitive threat, Pro Medicus is reinforcing the thesis that AI strengthens its moat rather than eroding it.

For a stock that spent the first half of 2026 being sold down on exactly the opposite fear, that distinction is the real reason this deal matters.

The post Pro Medicus just struck a revolutionary AI cardiology deal. Here's why that matters appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4% to $7.12. This follows news that the infant formula company is rewarding shareholders with a NZ$300 million special dividend. The company estimates this will equate to 41.36 New Zealand cents per share (33.9 Australian cents per share). Based on its last close price of $6.85, this represented a dividend yield of just under 5%. A2 Milk's chair, Pip Greenwood, said: "With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management."

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 33% to $1.65. Investors have been bidding the medical technology company's shares higher after Pro Medicus Ltd (ASX: PME) made an investment. Pro Medicus' CEO, Dr Sam Hupert, said: "In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ's technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ."

Lendlease Group (ASX: LLC)

The Lendlease share price is up 5% to $3.06. This has been driven by the announcement of a major divestment. Lendlease will divest its remaining 25.1% interest in the Keyton Retirement Living Trust to existing co-investor, Aware Super, for a consideration of $525 million. It advised that net proceeds will be used to reduce group debt. Management notes that this transaction brings the total of announced and completed capital recycling initiatives from the Capital Release Unit (CRU) to $3.4 billion.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up 4% to $10.73. This may have been driven by a pullback in oil prices overnight. As fuel is the airline operator's largest cost, any reduction in oil prices is good news for margins. Qantas shares are now up almost 20% over the past two weeks.

The post Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

Shares hitting new highs

Echo IQ shares hit a high of $1.87, up 50.8%, before settling back to be changing hands for $1.72, up 38.7% by mid-morning. The shares have increased from lows of 16.5 cents over the past 12 months.

The company said in a statement to the ASX that Pro Medicus had agreed to invest an initial $10 million in the company through a subscription for secured convertible notes, with the right to subscribe for a further $10 million once Echo IQ had its EchoSolv HF product cleared by the US Food and Drug Administration.

EchoSolv HF is an AI-powered heart failure detection software.

Pro Medicus has also agreed to become a reseller for EchoSolv, "providing potential access to an extensive network of leading US health systems, academic medical centres and enterprise healthcare customers''.

Echo IQ said regarding the deal:

The proposed partnership represents a significant strategic milestone for Echo IQ. Beyond the proposed investment, the arrangement has the potential to provide exceptional validation for Echo IQ and access to a leading healthcare technology platform with an extensive US based customer network, supporting the Company's strategy to accelerate adoption of its AI-powered cardiac diagnostic solutions across the US. Pro Medicus is widely regarded as one of Australia's most successful healthcare technology companies and a global leader in enterprise medical imaging software. Through its Visage platform, Pro Medicus provides mission critical imaging solutions to many of the largest health systems, academic medical centres and integrated delivery networks throughout the US.

Access to markets a key element of the deal

Echo IQ Chief Executive Officer Dustin Haines added:

The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US. Importantly, this proposed partnership extends far beyond the investment itself. Through Pro Medicus, we have the opportunity to leverage an established healthcare platform, trusted customer relationships and a highly experienced commercial organisation with deep penetration into the US healthcare market. We believe this creates a compelling pathway to accelerate awareness, adoption and commercialisation of EchoSolv across a broad range of healthcare providers.

RBC Capital Markets said in a note to clients that the deal was also positive for Pro Medicus, as "the deal delivers both an economic interest and a product that deepens its cardiology value proposition through the embedding of an AI diagnostic capability directly onto Visage''.

Pro Medicus shares were 1.6% higher at $181.95. RBC has a price target of $195 on the shares.

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At the time of writing, the Pro Medicus share price is up 2.05% to $182.66.

It has been a big month for the company's shares, which have now climbed around 40% over that period.

That bounce has helped repair some of the damage from earlier in the year. Even after the recent rally, Pro Medicus shares are still down roughly 17% since the start of 2026.

The latest announcement appears to have given the rally another push.

Pro Medicus signs AI agreement

According to the release, Pro Medicus has signed binding heads of agreement (HoA) with Echo IQ Ltd (ASX: EIQ).

The deal would see Pro Medicus take a stake in Echo IQ and work with the company to sell its products in the US.

Echo IQ is an AI and medical technology company working in cardiology. Its software is designed to help doctors make decisions using heart imaging data.

Under the agreement, Pro Medicus will make an initial $10 million investment in Echo IQ through secured convertible notes.

There is also room for another $10 million investment if Echo IQ receives US Food and Drug Administration clearance for its EchoSolv HF product.

EchoSolv HF is an AI-powered tool that helps identify heart failure risk using cardiac imaging data.

Furthermore, the agreement includes a proposed reseller arrangement. This allows Pro Medicus to market and distribute Echo IQ's products to its healthcare customers, particularly in the United States.

Echo IQ deal opens another door

The update seems to have gone down well because it gives Pro Medicus another way to build out its cardiology offering.

The company is already best known for its Visage Imaging platform, which is used by large healthcare groups to view and manage medical images.

This agreement could add Echo IQ's AI technology to the mix, while giving Echo IQ access to a much larger customer network.

Pro Medicus CEO Dr Sam Hupert said the company is "looking to offer Visage 7 Cardiology customers the option of using Echo IQ's technology."

He said the agreement fits with the company's strategy of offering a carefully selected suite of algorithms. That includes its own technology, tools created with clinical partners, and third-party algorithms such as Echo IQ.

What comes next?

It's worth remembering that despite the positive news, the agreement still needs final legal documentation.

The companies said the deal is expected to be finalised in the coming weeks.

Echo IQ also said its FDA submission for EchoSolv HF remains on track for an outcome in the near term.

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When a company is growing revenue rapidly, there is a strong chance that operating leverage will improve, and profit margins can increase. Typically, investors usually value a business based on how much net profit it could make in the future,

The investment team from WAM Active Ltd (ASX: WAA) have outlined a couple of compelling ASX shares that could be great opportunities today. They are usually looking for mispriced opportunities in the Australian market.

EchoIQ Ltd (ASX: EIQ)

WAM described EchoIQ as an Australian medical technology company focused on improving cardiology decision-making through AI to detect structural heart issues in echocardiograms.

The fund manager noted that the company has received US Food and Drug Administration (FDA) approval for severe aortic stenosis detection, with additional FDA clearance for heart failure detection expected in the near term.

WAM noted that the EchoIQ share price rose 44% in May after the ASX growth share announced an expanded resale and distribution agreement with the Mount Sinai Health System (one of the leading cardiology programs in the US) in late April.

The investment team explained that the agreement provides meaningful clinical validation and further de-risks the FDA pathway. FDA clearance for heart failure is expected in the coming weeks, which would significantly expand EchoIQ's US addressable market and support a "material uplift" in revenue generation.

WAM said:

We believe additional hospital signings and strategic partnership discussions with Australian and US-based parties remain key near-term catalysts for further share price re-rating.

Megaport Ltd (ASX: MP1)

The other ASX growth share that WAM highlighted is Megaport, a Brisbane-headquartered network-as-a-service provider. After its 2025 acquisition of Latitude.sh, it also operates a global on-demand compute platform.

The company is positioned as one of the few ASX (growth) shares that has direct exposure to the infrastructure supporting artificial intelligence (AI) adoption.

Last month, the ASX growth share announced three binding contracts with two US AI customers, with a total contract value (TCV) of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million.

Two of those three contracts have 36-month terms, providing visibility into revenue. The Megaport share price increased by 28% on the day, exceeding the contract value.

The agreements validate the strategic rationale for the Latitude.sh on-demand ARR increasing 31% since the acquisition, compute is becoming a key growth driver.

WAM concluded:               

We continue to hold Megaport, with the May contract wins supporting the FY2026 and FY2027 earnings outlook, and further customer announcements representing a credible near-term catalyst.

The post 2 ASX growth shares to buy with big growth potential! appeared first on The Motley Fool Australia.

Growing the footprint

The company said in a statement to the ASX on Tuesday that EchoSolv AS would be deployed into Mount Sinai, which comprises seven hospitals, more than 400 outpatient practices, and more than 3,760 beds

EchoSolv AS is an AI-based decision support software package for the assessment of severe aortic stenosis.

The company said Mount Sinai was a prestigious organisation to be associated with.

It added:

The system services millions of patient interactions annually, encompasses over 3,760 beds across campuses, and is consistently ranked among the top hospitals in the US across multiple specialties, including cardiology and heart surgery. Its scale, research pedigree and clinical leadership position it as a high-volume, high-complexity healthcare network at the forefront of adopting advanced digital health and AI-enabled technologies. The deployment marks a significant milestone for Echo IQ and reflects the Company's continued growth as health systems and cardiology practices seek practical AI products that can be integrated into existing clinical workflows.

Echo IQ US General Manager Nick Lubbers said the company was proud to be working with such a highly regarded health system.

He added:

This deployment is an important step in our US commercial growth and underscores increasing interest in solutions that can support cardiologists within routine echocardiography workflows. We believe EchoSolv AS offers a practical, measurement-based second look that can help physicians assess severe aortic stenosis more consistently and look forward to working with The Mount Sinai Health System to demonstrate its utility at scale.

Echo IQ shares initially traded more than 8% higher on the news on Tuesday morning before falling back to be 5.2% lower at $1.08.

Shares looking like good value

The analyst team at Morgans have a price target of $1.30 on Echo IQ shares, but has flagged that there's further significant upside possible following FDA approval for one of the company's other technologies, EcholSolv HF.

As they said in a note to clients recently:

We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.

Echo IQ is valued at $757 million.

The post This ASX biotech has just announced a major US deal appeared first on The Motley Fool Australia.

Key new technology

So what does the company do?

EchoIQ has developed a technology it calls EchoSolv HF, which is software which allows clinicians to identify patients with heart failure using data from echocardiograms.

The company last month said it had struck an agreement with the Mayo Clinic in the US, which paved the way for the technology to be rolled out once it was approved by the US Food and Drug Administration.

As the company said at the time, the agreement with the Mayo Clinic followed a collaboration between the two organisations.

The expanded agreement follows a validation study conducted through the Mayo Clinic Platform validation program. The study met its primary endpoint, with EchoSolv HF demonstrating a sensitivity of 99.5% in identifying patients with heart failure and a specificity of 91.1% in correctly identifying patients without heart failure. These results have not been reviewed or cleared by the FDA and are subject to the FDA's regulatory review process. Following this study, the Company lodged its market clearance application for EchoSolv HF with the FDA via the 510(k) premarket notification pathway. The Company advises that it is currently progressing through the FDA review process and will provide additional updates as developments materialise.

The company said the clearance had the potential to unlock a significant market opportunity, with heart failure a "substantial and growing burden on the US healthcare system''.

Share price upside remains

EchoIQ shares have appreciated substantially over the past year as the company has progressed its technology, improving from a low of 16.5 cents to be trading at a year-high of $1.25 today.

This is close to the Morgans target price of $1.30, but the analyst team at Morgans have flagged there's further significant upside possible following FDA approval.

As they said:

We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.

Echo IQ was valued at $759.9 million at the close of trade on Thursday.

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Businesses with smaller market capitalisations could be compelling businesses to look at because they may have longer-term growth potential and the market hasn't priced in their long-term potential.

Fund managers from Wilson Asset Management (WAM) have picked out two businesses from the WAM Active Ltd (ASX: WAA) portfolio that could deliver good returns.

EchoIQ Ltd (ASX: EIQ)

WAM describes Echo IQ as an Australian medical technology company focused on improving decision-making in cardiology by using artificial intelligence (AI) to detect structural heart disease from echocardiograms.

The fund manager noted that the company received US Food and Drug Administration (FDA) approval for severe aortic stenosis, with additional FDA clearance for heart failure detection expected in the near term.

WAM pointed out that the EchoIQ share price rose by 47% in March after an announcement of an expanded resale and distribution agreement with the Mayo Clinic for EchoSolv HF. The fund manager said that the agreement provides "meaningful clinical validation and materially de-risks the FDA pathway".

The investment team expects further FDA clearance for the ASX share in the coming weeks, which would significantly expand EchoIQ's US addressable market and support early revenue generation.

WAM concluded:

We believe additional hospital signings and strategic partnership discussions with multiple Australian and US-based parties remain key near-term catalysts for further share price re-ratings.

Forrestania Resources Ltd (ASX: FRS)

The other ASX share that WAM highlighted from the WAM Active portfolio was Forrestania Resources, a Perth-based mineral exploration company targeting gold, lithium, nickel, and copper deposits, primarily in Western Australia's Eastern Goldfields, Forrestania, and Southern Cross greenstone belts.

WAM noted that the Forrestania Resources share price declined in March amid a 10% decline for the gold price.

The wider mining sector saw weakness during the month amid forced liquidations and broader macroeconomic volatility, including rising Treasury yields and a stronger Australian dollar.

WAM said it still owns this ASX share in its portfolio because it views recent events as "macro-driven dislocations, rather than a deterioration" of its investment thesis.

The fund manager decided to increase its stake in the ASX share during the March sell-off.

WAM's investment team concluded its thoughts on the business with the following:

Forrestania Resources remains a compelling, undiscovered gold opportunity on the ASX, led by David Geraghty, who spent 21 years at Mineral Resources Ltd (ASX: MIN) and played a key role in its success. With minimal institutional coverage and broker sponsorship, we see potential for a share price re-rating as near-term catalysts emerge.

The post 2 undervalued ASX shares to buy that experts think could deliver strong returns appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 3% to $48.56. This follows a rise in copper and iron ore prices overnight after the US postponed military strikes on Iran. It isn't just BHP that is rising on Tuesday. A good number of mining shares are pushing higher, which has driven the S&P/ASX 200 Resources index 2.3% higher at the time of writing.

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 19% to 73 cents. This morning, this healthcare technology company announced that its EchoSolv HF technology would be deployed via the Mayo Clinic Platform – Solutions Studio Program. This will enable Mayo Hospitals and 80 external partner hospitals to participate. The company's CEO, Dustin Haines, said: "The expansion of our agreement with Mayo Clinic is one of the more strategically important milestones in the Company's history. A more equitable arrangement with one of the most respected hospital systems in the US, as we move closer to FDA clearance and commercial deployment, leaves us well positioned for the months ahead."

Life360 Inc (ASX: 360)

The Life360 share price is up 3% to $19.32. Investors have been buying the family safety technology company's shares following another rise by its Nasdaq listed shares overnight. Despite this, Life360 shares are still down 40% since the start of the year amid broad weakness in the tech sector. Last week, Morgan Stanley put an overweight rating and $30.00 price target on its shares. This implies potential upside of 55% for investors over the next 12 months.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up almost 3% to $8.37. This has been driven by a pullback in oil prices overnight amid optimism that the US and Iran could soon commence peace talks. Given that fuel is one of Qantas' largest operating expenses, any relief in oil prices will be good news for future profitability. Last week, Macquarie Group Ltd (ASX: MQG) put an outperform rating and $11.60 price target on Qantas' shares. This suggests that upside of almost 40% is possible from current levels.

The post Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

Echo IQ said in a statement to the ASX on Tuesday that its EchoSolv HF technology would be deployed via the Mayo Clinic Platform – Solutions Studio Program, enabling Mayo Hospitals and 80 external partner hospitals to participate.

Regulatory hurdles remain

The EchoSolv software is currently going through the Food & Drug Administration (FDA) clearance process, after the company lodged a market clearance application for the technology in December.

Echo IQ said further re the agreement.

The expanded agreement follows a validation study conducted through the Mayo Clinic Platform validation program. The study met its primary endpoint, with EchoSolv HF demonstrating a sensitivity of 99.5% in identifying patients with heart failure and a specificity of 91.1% in correctly identifying patients without heart failure. These results have not been reviewed or cleared by the FDA and are subject to the FDA's regulatory review process.  

The company said it would keep shareholders advised as to the progress through the FDA clearance process.

The company said:

Clearance has the potential to unlock a significant market opportunity for Echo IQ. Heart failure represents a substantial and growing burden on the US healthcare system, with about 6.7 million Americans currently living with the condition and an estimated 2 million more patients remaining undiagnosed. Upwards of 16 million echocardiograms are performed in the US per annum, with around 8 million studies containing heart failure-relevant findings, representing approximately 50% of all echocardiographic exams.

Confident for the future

Echo IQ Chief Executive Officer Dustin Haines said the Mayo agreement was "one of the more strategically important milestones in the company's History''.

He added:

A more equitable arrangement with one of the most respected hospital systems in the US, as we move closer to FDA clearance and commercial deployment, leaves us well positioned for the months ahead. This milestone reflects the strength of the EchoSolv HF clinical utility and the growing commercial value of the solution, while the revised agreement provides a scalable pathway to market through the Mayo Clinic Platform. This may give us access to Mayo's hospital network and a broader ecosystem of healthcare providers seeking validated AI solutions.

Mr Haines said while the FDA application was still under review, the company remains confident in its submission.

The ASX biotech's shares were 13.8% higher in early trade at 70 cents. The shares have more than doubled in value over the past three months.

The company was valued at $405 million at the close of trade on Monday.

The post Which ASX biotech's shares are rocketing higher on big US news? appeared first on The Motley Fool Australia.

The two names in this article that WAM highlighted were among the top 20 holdings of the WAM Active Ltd (ASX: WAA) portfolio, a listed investment company (LIC) that seeks to identify mispricing opportunities in the Australian market.

Let's look at why the following businesses appealed to WAM.

Forrestania Resources Ltd (ASX: FRS)

The first business WAM mentioned was Forrestania Resources, a Perth-based resource exploration company that's targeting gold, lithium, nickel and copper deposits. It's searching for these resources largely in Western Australia's Eastern Goldfields, Forrestania and Southern Cross greenstone belts.

WAM noted that the company is led by executive chair David Geraghty, who has spent 30 years in the resources sector, including 21 years at Mineral Resources Ltd (ASX: MIN), where he played a key role in its breakout success.

Last month, Forrestania Resources executed a binding purchase agreement with Westgold Resources Ltd (ASX: WGX) to monetise ore stockpiles of up to $38 million in gross revenue, with first funds expected in the third quarter of 2026.

The fund manager said the agreement effectively transitions the ASX small-cap share from a developer to a producer, which is typically a major valuation catalyst.

WAM noted that the Lake Johnston mill project is fully funded and, based on current resources, is expected to support several years of production at a low cost. At the current resource prices, this is expected to generate "significant free cash flow relative to the company's current market capitalisation of over $600 million".

The fund manager also noted that the company is assessing additional tenement opportunities, having flagged interest in the Edna Gold Mine, owned by Ramelius Resources Ltd (ASX: RMS).

EchoIQ Ltd (ASX: EIQ)

The other ASX small-cap share that WAM highlighted was EchoIQ, which the fund manager described as an Australian medical technology company focused on improving decision-making in cardiology. It operates an AI-driven software platform.

Its flagship EchoSolv platform harnesses proprietary AI to scan echocardiogram reports and dramatically improve detection of structural heart disease, starting with severe aortic stenosis (AS) and now expanding into heart failure (HF) and beyond.

In December, Echo IQ formally lodged its US Food and Drug Administration (FDA) submission for EchoSolv HF after a standout clinical validation study with Mayo Clinic, with a decision expected in March or April.

WAM said that clearance would significantly expand the ASX small-cap share's US addressable market, with heart failure as the leading cause of rehospitalisation and accounting for 17% of total US healthcare spending.

The fund manager said that industry sources confirm Echo IQ's technology is market-leading, positioning the company for rapid US penetration.

Strategic partnerships remain a near-term catalyst, according to WAM, with active interest from multiple parties, while there is also potential to improve existing reimbursement rates for severe aortic stenosis.

The post 2 exciting ASX small-cap shares this fund manager thinks are buys appeared first on The Motley Fool Australia.

The artificial intelligence and medical technology company said in a statement to the ASX on Monday that it had lodged a market clearance application for EchoSolv HF, its heart failure clinical decision support software, with the FDA.

Large market awaits

The submission also incorporated results from a clinical validation study conducted specifically to support the application, the company said.

The company went on to say:

The study, designed to validate the model's ability to detect heart failure on an independent dataset, showed EchoSolv HF met the primary endpoint with study data demonstrating sensitivity of 99.5% and specificity of 91.0% in the detection of heart failure across a dataset of 17,000 echocardiograms from Mayo Clinic Platform.

Echo IQ said the 510k submission was required for medical devices to demonstrate that they are "substantially equivalent" in safety and effectiveness to a legally marketed device.

Once substantial equivalence has been determined and FDA clearance has been issued, the company may market and distribute the device in the United States for the cleared indications for use. FDA clearance, if obtained, would unlock a significant addressable market opportunity for EchoSolv HF in the US healthcare sector, where heart failure is the leading cause of hospitalisation and accounts for 17% of US healthcare expenditure nationally.

FDA decision to come

Echo IQ Chief Executive Officer Dustin Haines said it was a significant milestone for the company.

The lodgement of the submission is a testament to the hard work and disciplined execution of Echo IQ's operations team alongside our key industry partners including Mayo Clinic. With the submission process complete, we will continue to work with our broad network of industry partners across both product development and distribution, ahead of an expected FDA decision in the coming months. The ongoing advancement of our healthcare technology suite positions the company for another momentum driven year ahead, leveraging our proprietary technology to deliver improved healthcare solutions, and we look forward to updating our investors on key progress initiatives early in the new year.

EchoiQ was valued at $178.8 million at the close of trade on Friday, with its shares last changing hands for 27.5 cents.

The stock has traded as high as 37 cents and as low as 16.5 cents over the past 12 months.

The post This biotech has lodged a key submission with US regulators appeared first on The Motley Fool Australia.

Shares in the company, which develops AI products to treat cardiovascular disease, closed on Friday trading for 24 cents. Shares entered a trading halt on Monday at the company's request and resumed trading on the ASX today.

In morning trade on Wednesday, shares just leapt to 30 cents, up 25.0%.

At time of writing, shares have given back some of those gains to be swapping hands for 29 cents apiece, up 20.8%.

For some context, the All Ordinaries Index (ASX: XAO) is up by 0.4% at this time.

Here's what sending the ASX biotech soaring today.

ASX biotech stock lifts off on FDA green light

The Echo IQ share price is surging after the company announced that it has received 510(k) clearance from the US Food and Drug Administration (FDA) for its AI-enabled solution EchoSolv AS.

EchoSolv AS is designed to automatically highlight patients with significant risk of Aortic Stenosis, a form of heart valve disease.

Investors are bidding up the ASX biotech stock as EchoSolv AS can now be marketed to and used by healthcare professionals in the US as a decision support aid to detect severe Aortic Stenosis.

EIQ said it is already in advanced discussions with a range of US healthcare providers around the potential uptake of EchoSolv AS as the company said it will now turn its attention to commercialising its products in the world's top economy.

Following EIQ's recent capital raise, management said the company is well funded to advance multiple near-term commercialisation opportunities.

Commenting on the FDA clearance sending the ASX biotech stock soaring today, EIQ executive chair Andrew Grover said, "FDA clearance is major milestone for Echo IQ and provides the foundation to deliver a material value uplift for our shareholders."

Grover continued:

The company now has the ability to commercialise its technology in the world's largest and most well-regulated market, for a condition which is widespread and chronically underdiagnosed. EchoSolv AS shows significant improvements in the detection of severe Aortic Stenosis when compared to current clinical practice….

FDA clearance also provides another catalyst to secure reimbursement codes, which have the potential to provide Echo IQ with a fee on a per use basis from large insurance groups. This is anticipated to underpin future revenues in the US market.

New US-based CEO

In a separate release, the ASX biotech stock reported on the appointment of a new CEO.

Dustin Haines will take the helm on 10 January. He will be based in the US to lead the company's growth strategy, starting with commercialisation in the US market.

Haines has a 25-year career in the biotechnology and pharmaceutical sectors. Most recently he served as vice president of Gilead Sciences, Asia, Middle East, Turkey and Russia.

Commenting on the new CEO appointment, Grover said, "To have secured someone of Dustin's calibre to execute our stated commercialisation strategy highlights the considerable potential of the company's technology in the US market."

With today's intraday gains factored in, shares in the ASX biotech stock are up 71% in 2024.

The post Guess which ASX biotech stock just rocketed 25% on big US news appeared first on The Motley Fool Australia.