The company, which operates healthcare imaging centres across Australia and New Zealand, said in a statement to the ASX on Tuesday morning that it had grown its first-half revenue by 55.6% to $393.5 million, while operating EBITDA was up 75.6% to $81.1 million.

Net profit came in at $9 million compared with a $400,000 loss for the same period the previous year.

Managing Director Dr Ian Kadish said of the result:

The group delivered a strong first half result with solid revenue growth at improved margins. This resulted in enhanced returns to shareholders with operating diluted earnings per share up 66% and a fully franked interim dividend of 3.3 cents per share, up 32.0%. Consistent with previous expectations, the merger with Capitol Health is providing IDX with enhanced operational scale and a broader network, a stronger platform for clinical outcomes and growth, and the opportunity to drive further margin improvement over time as evidenced by the strong results for the first half. The integration of Capitol Health has proceeded to plan, with $14.0 million-plus of annual synergies realised, significantly exceeding initial expectations of at least $10. million.

Shares looking cheap

Analysts at Jarden and RBC Capital Markets have had a look at the results, and like what they see.

The Jarden team said it was a "very strong" result with underlying net profit beating consensus estimates by 13%.

They said the recent sell-off of the company's shares had been on fears of rising labour costs, "which has a been a theme across healthcare service companies'', but at Integral Diagnostics labour costs were actually lower as a proportion of revenue, "reflecting workforce synergies, as well as increased use of tele-radiology''.

They said the company was also off to a good start in the second half with 7.8% revenue growth for January.

Jarden has a price target of $3.35 on Integral Diagnostics shares compared with $2.41 currently, up 0.63% for the day.

RBC Capital Markets has a price target of $3.50 on the shares and also said it was a positive result for the company.

They added:

While reported net profit after tax was a miss due to higher than expected transaction, restructuring and integration costs, we expect the market will like the 1H26 EBITDA margin of 20.6% which came ahead of guidance of 20%, as well as management retaining FY26 guidance for an EBITDA margin of about 21%. The stock has been weak leading into this result, therefore we expect the stock could experience a relief rally today on the earnings achieved in 1H26 and trading in Jan 26.

Integral Diagnostics will pay a 3.3-cent dividend on April 2 to shareholders on the books on March 5. The dividend is 32% higher than the same period last year.

The company was valued at $898.8 million at the close of trade on Monday.

The post Analysts agree, this healthcare company's shares are looking cheap appeared first on The Motley Fool Australia.

It has named three small-cap ASX shares that could be top picks for investors in February. Here's what it is recommending to clients:

Integral Diagnostics Ltd (ASX: IDX)

This diagnostic imaging company is highly rated by Bell Potter, especially after its merger with Capitol Health. The broker sees plenty of growth opportunities from greenfield and brownfield investments, as well as M&A opportunities. It said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Kinatico Ltd (ASX: KYP)

Another small-cap ASX share that has been recommended as a buy by Bell Potter is technology company Kinatico. It provides CV checks and workforce compliance management solutions.

The broker is positive on the company's growth outlook. It said:

Kinatico is a leading provider of "know your people" solutions to organisations in Australia and New Zealand. The company operates two key businesses: its legacy CVCheck brand, which provides employment screening and verification services to over 10,000 repeat corporate customers and its new key focus, a SaaS-based business that delivers real-time workforce compliance management and monitoring. The core strategy is to leverage the large customer base of the legacy CVCheck business to provide a ready-made sales pipeline for its higher growth SaaS compliance solutions.

Universal Store Holdings Ltd (ASX: UNI)

A third small-cap ASX share that is being recommended by Bell Potter is youth fashion retailer Universal Store.

The broker highlights Universal Store's strong growth outlook, which is being underpinned by its store rollout strategy, and cheap valuation as reasons to buy. It said:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

The post 3 super small-cap ASX shares that could be destined for big things appeared first on The Motley Fool Australia.

But that's not to say they believe there isn't money to be made, with bullish price targets on a number of stocks.

Doing it tough

The RBC team said broadly regarding the sector:

We are expecting a somewhat difficult reporting season for our covered Australian healthcare companies with most results either coming in line with consensus expectations or disappointing. We have a similarly challenging view for the remainder of 2026 with our covered companies likely affected by new management teams 'kitchen sinking' guidance, cost pressures impacting margins, and competitive threats constraining revenue growth.

RBC said they were flagging "potential result misses" from Cochlear Ltd (ASX: COH), Regis Healthcare Ltd (ASX: REG), Nanosonics Ltd (ASX: NAN), Australian Clinical Labs Ltd (ASX: ACL), Monash IVF Ltd (ASX: MVF), and a beat from CSL Ltd (ASX: CSL).

They went on to say:

In this context, we favour stocks with strong near-term earnings outlooks that can hold their current valuation multiples and obtain share price appreciation through earnings growth.

These companies included CSL, ResMed Inc (ASX: RMD), Cochlear, Ansell Ltd (ASX: ANN), and Integral Diagnostics Ltd (ASX: IDX).

Price targets looking attractive

Drilling down further into the companies expected to experience share price gains, RBC said they believed ResMed would deliver a "solid" result, with double-digit revenue and net profit growth.

RBC has a price target on ResMed of US$311 for its US-listed stock compared with $US257.58 currently, which would be a 20.7% gain if achieved.

For CSL, RBC expects "a better-than-expected result with revenue and gross profit exceeding consensus forecasts''.

RBC has a price target of $230 on CSL shares compared with $178.21 currently.

For Cochlear, the RBC team believe the hearing device company could miss consensus forecasts, but still has a bullish price target on the stock of $325 compared with $268.93 currently.

Regarding Ansell, RBC forecasts "a soft operational result with revenue and gross profit missing consensus expectations, but better cost management enabling an EBIT and NPAT beat''.

RBC has a price target of $41 on Ansell shares compared with $33.75 currently.

For Integral Diagnostics, RBC "forecast IDX's 1H26 revenue being in line with consensus, however earnings coming in below expectations''.

Despite this they have a bullish share price target of $3.50, compared with $2.59 currently.

The post What are the healthcare stocks where RBC Capital Markets thinks you can make money? appeared first on The Motley Fool Australia.

Although this is very disappointing, it could be setting the stage for a major recovery in 2026.

With that in mind, let's take a look at three ASX healthcare shares that Bell Potter has named as best buys for the year ahead.

Integral Diagnostics Ltd (ASX: IDX)

Bell Potter is positive on this leading provider of medical imaging services. Especially given the successful integration of the Capitol Health business and its attractive valuation. It explains:

Integral Diagnostics is a leading provider of medical imaging services across Australia and New Zealand. IDX operates 145 clinics, which includes 42 fully licensed MRI machines and a further 22 unlicensed MRI. The integration of Capitol Health (CAJ) has gone well with integration synergies guidance upgraded by 40% to $14m p.a.

The full impact of MRI de-regulation, the lung cancer screening programme and GP bulk billing initiatives should flow through in 2H26, with subsequent EBITDA margin improvement to c.21% by the end of FY26. The IDX share price has been relatively flat over the past 6 months and compares favourably with the XHJ that has declined c.14% over the same period. IDX is trading on an EV/EBITDA multiple of c.9x and a PEG ratio of c.0.6x, attractive valuation metrics going into CY26.

The broker has a buy rating and $4.00 price target on its shares.

Pro Medicus Ltd (ASX: PME)

Another ASX healthcare share that Bell Potter is bullish on is health imaging technology company Pro Medicus.

The broker believes that Pro Medicus is one of the "highest quality companies on the ASX" and expects its strong earnings growth to continue in FY 2026 and FY 2027. This is being supported by the radiology industry's structural shift to the cloud. It explains:

The entire radiology industry is headed to cloud based (off premises) archiving. Put simply, the Visage 7 viewer, Workflow and Archive are the fastest and most advanced tools for the retrieval and viewing of large radiology files.

The platform is immensely scalable and relatively easily installed, providing it with a sustainable competitive advantage over the likes of peers Intelerad, Sectra, Phillips and GE Healthcare. The company is conservatively managed and well owned by large institutional investors while the two founders continue to have a controlling stake.

Bell Potter has a buy rating and $320.00 price target on Pro Medicus' shares.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, Bell Potter thinks radiopharmaceuticals company's shares could be a top option for 2026.

The broker believes that there's a strong probability of its Zircaix receiving US FDA approval next year, which could be a big boost to its revenue. It said:

We are confident regarding the approval in CY 2026 of Zircaix following resubmission of the Biological License Application (BLA). The FDA rejected the original BLA due to CMC (chemistry manufacturing & control) matters at Telix's manufacturing partner. There were no matters related to safety or efficacy.

We expect the market for Zircaix once approved will be in excess of US$500m. The product has been included in guidelines for disease management in the US and Europe and continues to be available in the US under the expanded access program. Elsewhere, sales of Iluuccix/ Gozellix in the PSMA franchise continue to grow and were recently boosted by the refresh on the pass through pricing.

Bell Potter has a buy rating and $23.00 price target on the ASX healthcare share.

The post Bell Potter names the best ASX healthcare shares to buy in 2026 appeared first on The Motley Fool Australia.

Since the start of 2025, the S&P/ASX Small Ordinaries index has risen by a sizeable 17%.

As a comparison, the widely followed All Ordinaries index is only up by 4.9% since the turn of the year.

With that in mind, if you are wanting to gain exposure to the small side of the market, then it could be worth hearing what Bell Potter is saying about the three small cap ASX shares listed below.

Here's why it thinks they are among the best to buy for 2026:

Integral Diagnostics Ltd (ASX: IDX)

This diagnostic imaging company could be a top pick small cap investors according to Bell Potter.

It likes the company due to its merger with Capitol Health, which has boosted its network to 151 clinics. It also sees opportunities to continue its growth through greenfield and brownfield investments, as well as mergers and acquisitions (M&A). It said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Kinatico Ltd (ASX: KYP)

Another small cap ASX share that Bell Potter is bullish on is know your people solutions provider Kinatico.

It sees opportunities for the company to grow strongly through leveraging its large customer base. The broker explains:

Kinatico is a leading provider of "know your people" solutions to organisations in Australia and New Zealand. The company operates two key businesses: its legacy CVCheck brand, which provides employment screening and verification services to over 10,000 repeat corporate customers and its new key focus, a SaaS-based business that delivers real-time workforce compliance management and monitoring. The core strategy is to leverage the large customer base of the legacy CVCheck business to provide a ready-made sales pipeline for its higher growth SaaS compliance solutions.

Praemium Ltd (ASX: PPS)

This investment platform provider is a third small cap ASX share that has been given the thumbs up from Bell Potter.

It has been pleased with the company's performance in recent times and feels that the market is not appreciating this. The broker highlights that at 20x forward earnings, its shares are significantly cheaper than its larger rivals. It said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post 3 of the best Australian small cap shares to buy for 2026 appeared first on The Motley Fool Australia.

Integral Diagnostics provides diagnostic imaging services such as magnetic resonance imaging (MRI), ultrasound, and radiography at 145 sites across Australia and New Zealand. The Macquarie team says the company stands to benefit from programs such as the National Lung Cancer Screening Program, which the federal government is tipping $264 million into.

The company will also benefit from a boost to bulk-billing, according to Macquarie:

Success in CT lung cancer screening, supported by $264m in government funding and Integral Diagnostics' expected 20% market share, is partly offsetting a slower MRI ramp. The upcoming $7.9bn expansion of bulk billing from Nov-25 should boost GP volumes and imaging referrals, particularly in regional areas where Integral Diagnostics is strong. We forecast FY26 domestic organic revenue growth of 8%.

Several pillars to growth

The Macquarie team said synergies from the 2024 merger with Capitol Health, ongoing clinic investments and expansion of the GP bulk billing program would all be "fully realised" in the current financial year.

These factors, combined with procurement efficiencies and an expected shift of patients from public emergency departments to GP channels, position Integral Diagnostics for a step-up in margins in the second half.

The Macquarie team said the company could also increasingly shift work to radiologists working remotely, allowing for more flexibility in staffing, supporting EBITDA margin forecasts.

As the analysts said:

We see several significant tailwinds for Integral Diagnostics over FY26, with expected ongoing mix shift benefits to higher fee modalities supported by MRI deregulation, CT lung cancer screening programs. Higher annualised cost savings further supports our EBITDA margin expectations.   

The Macquarie team have a 12-month price target of $3.40 on Integral Diagnostics shares, and including dividends, are forecasting a total shareholder return of 32.2% over the next year.

Integral Diagnostics declared a fully franked final dividend of 4 cents per share in August, bringing the full year payout to 6.5 cents per share.

Integral Diagnostics shares were changing hands for $2.59 on Tuesday, up 0.7%.

Macquarie said in a separate research note to clients earlier this year that it preferred Integral Diagnostics to Australian Clinical Labs Ltd (ASX: ACL), which it had a neutral rating on.

The post Macquarie predicts this ASX All Ords healthcare stock to surge past $1 billion over the next 12 months appeared first on The Motley Fool Australia.

While this is disappointing, it could have created a buying opportunity for investors with a high tolerance for risk.

But which small cap ASX shares could be buys? Let's take a look at two that Bell Potter is tipping as its best buys.

Integral Diagnostics Ltd (ASX: IDX)

This medical imaging services provider could be a small cap ASX share to buy according to Bell Potter.

It believes the company is well-placed for growth in the coming years thanks to its recent merger with Capitol Health. The broker said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Bell Potter has a buy rating and $4.00 price target on its shares. This implies potential upside of almost 60% for investors over the next 12 months.

Praemium Ltd (ASX: PPS)

Another small cap ASX share that could be a buy according to the broker is investment platform provider Praemium.

Bell Potter thinks that Praemium's shares are being undervalued by the market, especially when comparing it to its larger peers. It said:

Praemium Ltd (PPS) was formed in 2001 as a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service, supporting financial intermediaries and individual investors in their managing wealth. The integrated technology simplifies portfolio management end-to-end and delivers a complete value proposition. Today, PPS manages +$60bn in custodial and non-custodial FUA.

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The broker has a buy rating and $1.05 price target on the small cap. Based on its current share price, this suggests that upside of almost 35% is possible for investors between now and this time next year.

The post 2 ASX small-cap shares to buy right now appeared first on The Motley Fool Australia.

The broker has a bullish price target of $4 per share on the imaging company's shares, which is almost 50% higher than the closing price of $2.70 on Tuesday of this week.

And once a dividend yield of 3.3% is factored in, the total expected return for the company, which provides diagnostic imaging services such as magnetic resonance imaging (MRI), ultrasound, and radiography at 145 sites across Australia and New Zealand, increases to 51.3% over a 12-month period, the broker says.

Government policy a tailwind

Bell Potter analysts said the commencement of the deregulation of MRI services by the Federal Government changed the landscape for companies such as Integral Diagnostics, in a positive sense.

The thinking behind the Federal Government's phased deregulation reflects the shift to focusing on efficiency and reducing overall cost in the health system, where greater utilisation of MRI scans can reduce the need for more costly surgical procedures.

Bell Potter analysts recently toured Integral Diagnostics' "jewel in the crown" – its Imaging at Olympic Park (IOP) facility in the heart of Melbourne's sports precinct at AAMI Park – which they said was a "leading centre of excellence in musculoskeletal imaging and innovative treatments for the sporting and wider community''.

We understand that IOP is currently the only private site in Australia that has three MRI machines, giving Integral Diagnostics an edge in leveraging the new opportunity from deregulation. As a prime musculoskeletal imaging site, it services key sports of AFL, NRL, basketball, cricket, tennis via The Australian Open and the Melbourne Victory soccer team.

Bell Potter analysts said the site was "extremely impressive" and had a strong operational focus, "generating superior profit margins''.

Share price fall creates opportunity

They also noted that the Integral Diagnostics share price had fallen about 10% after the announcement of a positive FY25 profit result in August, and by their metrics, the company was now "firmly in value territory in our view".

We think there are tailwinds emerging from the merger synergies, MRI de-regulation, the national lung cancer screening program, addressing locum costs in regional reporting contracts, as well as the ongoing penetration of IDXt (teleradiology).

In late 2024, Integral Diagnostics merged with Capitol Health in a scrip-based deal, which valued Capitol at $413 million.

Bell Potter analysts said they expected the company to also announce the appointment of a new chief executive in the lead-up to the annual general meeting, which is being held on October 31.

The post This All Ords imaging company stock could return more than 50%, one broker says appeared first on The Motley Fool Australia.

Medicare statistics for August, compiled by Macquarie, show that pathology volumes grew by 7% year over year while imaging volumes were up 6%.

This is good news for Integral Diagnostics, which provides diagnostic imaging services such as magnetic resonance imaging (MRI), ultrasound, and radiography at 145 sites across Australia and New Zealand.

Macquarie said its "key pick remains IDX, for which we expect cost synergies, MRI deregulation and GP bulk billing incentive to support earnings per share growth''.

Key downside risks to our thesis on IDX primarily relate to weaker-than-expected volume growth and/or operating cost growth ahead of our expectations. Downside from the… merger would be less-than expected cost synergies from the group.

Macquarie has an outperform rating on Integral Diagnostics shares and a price target of $3.40, compared to the current price of $2.81.

The broker has a neutral rating on Australian Clinical Labs Ltd (ASX: ACL), although it flags that there is likely still some upside to that stock. Its price target is $2.90, compared with the current price of $2.49.

Merger synergies better than expected

In late 2024, Integral Diagnostics merged with Capitol Health in a scrip-based deal, which valued Capitol at $413 million.

While releasing the company's full-year financial results in August, Integral Managing Director Dr Ian Kadish said the integration of the company was delivering better than expected cost savings.

FY25 was a transformational year for the company, including the merger with Capitol Health which was successfully completed on 20 December 2024. The integration of Capitol Health has proceeded to plan, with $7 million of synergies realised in FY25, representing annualised synergies of $14 million, significantly exceeding initial expectations of at least $10 million.

Integral Diagnostics declared a fully franked final dividend of 4 cents per share, bringing the full year payout to 6.5 cents per share, with the final dividend to be paid on October 3.

The company said in August that its focus for the current financial year was to drive organic earnings growth, "including relentless focus on radiologist recruitment and productivity, together with operational efficiency''.

It would also seek to accelerate the use of artificial intelligence and teleradiology.

The post Macquarie tips more than 20% upside for this ASX All Ords healthcare stock appeared first on The Motley Fool Australia.

With S&P/ASX 200 Index (ASX: XJO) healthcare stock CSL Ltd (ASX: CSL) recently facing criticism, investors may be looking for alternatives.

In its report, Emerging Leaders Reporting season wrap & best picks, Macquarie revealed its best stock picks following earnings season. Among them were 2 ASX healthcare stocks. 

Let's find out which ones were named.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Neuren Pharmaceuticals was the first ASX healthcare stock named. 

The company develops treatments for neurodevelopmental disorders that emerge in early childhood, including Rett syndrome. Its flagship product is DAYBLUE, the first and only FDA-approved drug for Rett syndrome in the US.

Macquarie initiated coverage of Neuren Pharmaceuticals on 18 June, and described it as a 'standout in the ASX biotech sector'.

In July, Macquarie named Neuren Pharmaceuticals as one of its top four ASX healthcare stocks to buy ahead of earnings season. 

After reviewing its 1H25 result, the broker continues to regard it as a stand out pick in the sector. 

Macquarie was pleased with the company's international expansion progress, noting:

We expect ROW expansion for DAYBUE is imminent, with Acadia anticipating EMA approval in 1Q26. This would trigger further royalty and milestone payments from Acadia, presenting upside to our earnings forecasts. Given the ROW expansion on track in Europe, we de-risk our ROW valuation from 50% to 75%.

Macquarie has an outperform rating and price target of $21.20 on Neuren Pharmaceuticals shares.

The ASX healthcare stock is up more than 1600% over 5 years, and 68% for the year to date.

Integral Diagnostics (ASX: IDX)

Integral Diagnostics was the second ASX healthcare stock Macquarie named. 

The company provides medical and diagnostic imaging services across Australia and New Zealand, including X-rays, ultrasound, CT, and MRI scans.

Back in July, the broker also included Integral Diagnostics as one of its top ASX healthcare picks to buy ahead of earnings season. The broker cited "solid industry fundamentals" and "CAJ merger upside" in support of this recommendation.

Once again, Macquarie was impressed by its FY25 result.

When analysing its FY25 result, Macquarie commented:

We expect further margin expansion driven by cost synergies from the CAJ merger, with IDX increasing synergy expectations to A$14m (from previous A$10m). We expect scale benefits and increased teleradiology to further support margin expansion. This drives our forecasts of 140bps margin expansion in FY26E, with a further 50bps expected in FY27E.

Macquarie has an outperform rating and price target of $3.20 on Integral Diagnostics shares.

Over the past 5 years, Integral Diagnostics shares are down 29%. For the year to date, they are flat.

The post Expert names 2 ASX healthcare stocks to buy in September appeared first on The Motley Fool Australia.

That's because the broker has just released its latest top Australian picks for the month of September.

It notes that its panel of favoured small cap Australian equities are the ones that it believes offer attractive returns over the long term.

Three that make the list this month are named below. Here's why it is bullish on them:

DroneShield Ltd (ASX: DRO)

Bell Potter remains positive on this counterdrone technology company and has named it on its panel again in September.

The broker believes that DroneShield is well-placed for growth over the coming years. This is due to increasing demand for counterdrone technology from military and intelligence customers across the globe. It commented:

DroneShield is an Australian defence manufacturer specialising in counterdrone technology. DRO provides an end-to-end counter-drone solution that integrates proprietary artificial intelligence software with a suite of hardware products utilised to detect, identify and defeat aerial, ground and maritime threats.

The company's products are largely in-house technology and include handheld, vehicular and fixed installations. DRO's customers primarily include military and intelligence, as well as law enforcement, critical infrastructure and commercial parties globally.

Cedar Woods Properties Ltd (ASX: CWP)

Another ASX share that Bell Potter is very bullish on is property developer Cedar Woods.

It likes the company due to its strong track record and its exposure to Australia's chronic housing shortage. It believes the latter leaves it well-positioned for growth in the near term. It explains:

Cedar Woods is a residential property developer based in Perth, WA. The group also develop and own commercial property where they see a value add to their residential projects. CWP has a 35-year track record of delivering earnings and a proven management team. CWP has a substantial pipeline of residential projects amidst Australia's extreme housing shortage, record presales, and positive forward commentary from a historically conservative management team.

We are attracted to the current valuation – trading a discount to its long-term average NTA premium of +30% and at a forward PE of 11x, which undervalues its double-digit growth profile.

Integral Diagnostics Ltd (ASX: IDX)

A third ASX share that has been given the seal of approval is diagnostic imaging company Integral Diagnostics.

The broker believes that its recent merger with Capitol Health has been a bit of game-changer. And with opportunities to grow organically and through acquisitions, Bell Potter believes it has a strong outlook. It said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States.

The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

The post Bell Potter names the best ASX shares to buy in September appeared first on The Motley Fool Australia.

In early afternoon trading today, the share price has dipped by a small 1.15%, but thanks to yesterday's surge, shares are still 15.96% higher than this time last year.

For context, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.6% higher this afternoon. Over the year, the index is 11.05% higher.

The healthcare business provides diagnostic imaging to general practitioners, medical specialists, and allied health professionals and their patients. It operates over 90 radiology clinics across Australia and New Zealand.

What boosted the ASX small-cap healthcare stock?

Integral Diagnostics posted its FY25 financial results yesterday morning. And the numbers were impressive.

It revealed a 33.7% increase in revenue and other income to $628 million. It also reported a 38.3% lift in operating EBITDA and a 77.4% jump in operating NPAT.

The company said solid revenue growth was driven by growth in patient volumes, Medicare Indexation, and a "continued favourable mix impact".

The board announced a fully franked final dividend of 4.0 cents per share. This brings the full-year dividend to 6.5 cents per share, fully franked. The dividend reinvestment plan (DRP) will again be available. The record date for dividend payments is 1 September, and the payment and issue date is 3 October.

Going forward, the group expects growth to continue, driven by organic earnings growth, accelerated use of teleradiology, and completion of its merger with Capitol. The business started the FY26 financial year strong and achieved 7.0% revenue growth in July. 

Up, up and away

Following the announcement and share price surge, Macquarie Group Ltd (ASX: MQG) wrote a note to investors about Integral Diagnostics shares.

The broker confirmed its outperform rating on the stock and raised its target price to $3.40, up from $3.20 previously.

At the time of writing, this represents a potential 12.8% upside for investors over the next 12 months.

"Outperform. We see several significant tailwinds for IDX over FY26E, with expected ongoing mix shift benefits to higher fee modalities supported byMRI deregulation, CT lung cancer screening programs. Higher annualised cost savings further supports our EBITDA margin expectations," Macquarie said in its note.

It said that Integral Diagnostics' financial result was in line with expectations. It also noted that the company has had a strong start to FY26.

"We expect further margin expansion driven by cost synergies from the CAJ merger, with IDX increasing synergy expectations to A$14m (from previous A$10m). We expect scale benefits and increased teleradiology to further support margin expansion. This drives our forecasts of 140bps margin expansion in FY26E, with a further 50bps expected in FY27E," the broker said.

Macquarie also revised its earnings per share by -9%, -9%, and -3% for FY26, FY27, and FY28, respectively. The changes are off the back of anticipation of minor decreases in revenue expectations in FY26 and higher interest on a fixed cost base.

The post This ASX small-cap healthcare stock soared 12% yesterday, Macquarie tips even more upside appeared first on The Motley Fool Australia.

For context, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.59% lower this morning. Over the year, the index is 7.69% higher.

What is Integral Diagnostics?

Integral Diagnostics provides diagnostic imaging to general practitioners, medical specialists, and allied health professionals and their patients. 

The company operates more than 90 radiology clinics across Australia and New Zealand. It is also a joint venture partner in Medx, expanding its services to the United Kingdom and Ireland.

What does Macquarie think of the stock?

In a recent note to investors, the broker confirmed its outperform rating on Integral Diagnostics shares and $3.20 target price. That represents a potential 20.8% upside for investors over the next 12 months.

"Our key pick is IDX (OP) as the only pure-play imaging stock, benefiting from mix shift, indexation with further regulatory tailwinds from FY26e," Macquarie said.

Data shows that volumes for all healthcare services increased in H2 2025, except face-to-face GP.

"[face-to-face GP] continues to lag, down -1% vs pcp. From 1-Nov-25, there will be another $7.9bn in govt funding expected to expand bulk billing eligibility to support GP bulk billing," the broker said.

Macquarie expects the boost in government funding to improve GP volumes, and therefore, imaging and pathology referrals. 

Surgery, base pathology, and imaging volumes all grew in 2H25, up by low single digits of 3%, 4%, and 3%, respectively. 

"Imaging benefits +8% vs pcp, continuing to be supported by mix shift to higher fee modalities and indexation, driving benefits growth ahead of volume growth, which was up +3% vs pcp," the broker said in its note.

On a 3-month rolling basis, imaging benefits are 6% higher. On a 6-month and 12-month rolling basis, imaging benefits are 8% higher. 

Elsewhere, pathology also grew in H2 2025, up 5% versus the prior period. Pathology benefits were flat in June 2025 versus the prior period, resulting in pathology benefits in H2 2025 moderating to 5% for the year to June, the note explains.

But there could be risks ahead

While Integral Diagnostics is Macquarie's top pick for the sector, the broker notes there are some key downside risks to its thesis.

"[These] primarily relate to weaker-than-expected volume growth, and/or operating cost growth ahead of our expectations. Downside from the potential merger would be less-than-expected cost synergies from the Group."

The post Why Macquarie rates this ASX All Ords medical imaging stock a buy appeared first on The Motley Fool Australia.

Yesterday, the S&P/ASX 200 Index (ASX: XJO) reached a new all-time high of 8,641 points. 

The ASX 200's strong performance has pushed its price-to-earnings (P/E) ratio to around 20, which is significantly above its long-term average of 15, according to CommSec. 

In this market, ASX investors may be struggling to find attractively valued opportunities. In anticipation of a market decline, they also may favour defensive sectors. This includes healthcare, which typically holds up better than the average ASX stock during a correction.

Attractively valued ASX healthcare stocks may be especially appealing to investors right now. 

In a 17 July report, Australian Healthcare, broker Macquarie named its 4 most preferred ASX healthcare stocks ahead of the August 2025 reporting season.

What are they?

CSL Ltd (ASX: CSL)

It may come as no surprise that CSL was included in the broker's top 4 picks. 

While the recent market rally has propelled many ASX 200 stocks back toward their all-time highs, CSL remains materially behind. CSL is down 19% over the past year and 12% over the past five years. Slower earnings per share (EPS) growth and rising debt due to the Vifor acquisition have been key drivers of underperformance.

However, Macquarie is betting that the biotech giant can turn things around. It has an outperform rating and a price target of $347.50 on the stock.

Supporting this recommendation, the broker cited:

Base business recovery, Behring margins improvement on track, contributions from new products, operational efficiencies, valuation appeal following share price rebasing.

Macquarie also noted that CSL is currently trading at a 28% discount to its 10-year average price-to-earnings ratio. 

When CSL reports, Macquarie will be paying close attention to management commentary on the potential tariff implications and its R&D strategy.

Resmed CDI (ASX: RMD)

Resmed was also named among Macquarie's top ASX healthcare picks. 

Unlike CSL, Resmed shares have a solid five-year track record. They are up 29% over the past year and 41% over five years.

Macquarie is betting Resmed can charge even higher over the next 12 months. It has placed an outperform rating and price target of $45.90 on the stock. 

Supporting this recommendation, the broker cited:

Strong product cycle, increased awareness from GLP-1s supported by investment in diagnostics, solid operating leverage.

When Resmed reports, Macquarie will be looking for management commentary on RoW regulatory approval of AirSense11, sleep lab backlogs, and progress on new products (NightOwl, NPAP Tx).

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics was the third ASX healthcare stock named. 

Unlike CSL and Resmed, Integral Diagnostics is a small capitalisation stock with a market capitalisation of less than $1 billion. Accordingly, it may have flown under the radar for many ASX investors. 

Integral Diagnostics has risen 7% for the year to date; however, it is down 28% over five years. 

Macquarie is forecasting that the company has a bright future, placing an outperform rating and a price target of $3.20 on the stock. 

The broker cited "solid industry fundamentals" and "CAJ merger upside" in support of this recommendation.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Neuren Pharmaceuticals was the final ASX healthcare stock named by the broker.

Macquarie initiated coverage of Neuren Pharmaceuticals on 18 June, and described it as a 'standout in the ASX biotech sector'.

Although its share price has disappointed investors over the past year, falling 33%, long-term investors are unlikely to complain. Those who bought Neuren Pharmaceuticals shares five years ago are now up an impressive 1,126% on their investment. 

The good news for new and existing investors is that Macquarie believes the ASX healthcare stock has further to run. 

The broker has placed an outperform rating on the stock and a price target of $18.60. 

Macquarie cited its attractive valuation "with upside from ROW expansion and significant pipeline" in support of this recommendation.

The post Expert: 4 ASX healthcare stocks to buy ahead of reporting season appeared first on The Motley Fool Australia.

Then you may wish to run your slide rule over Integral Diagnostics Ltd (ASX: IDX), the second largest diagnostic imaging provider in Australia.

That's according to the analysts at Macquarie Group Ltd (ASX: MQG) following their latest deep dive into May's Medicare statistics.

In early afternoon trade today, Integral Diagnostics shares are up 4.0%, changing hands for $2.62 apiece.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.2% at this same time.

While the ASX All Ords healthcare stock still remains down 1.3% over a year, not including those dividend payouts, the next 12 months could usher in a significant rebound.

Here's why.

ASX All Ords healthcare stock eyeing strong demand growth

In a research report released by Macquarie on Thursday, the broker noted that Medicare volumes for all services in May increased year on year on a days-adjusted basis, with pathology volumes up more than 14%.

And in potentially good news for this ASX All Ords healthcare stock, Macquarie said that, on a benefits basis, imaging and pathology "grew strongly in May". Pathology was up 15% while imaging was up more than 10% year on year (days adjusted).

Macquarie said its "key pick remains Integral Diagnostics, which we expect to benefit from cost synergies related to the CAJ merger, leading to significant EPS [earnings per share] accretion".

The broker has an outperform rating on Integral Diagnostics shares, with a $3.20 12-month price target. That represents a potential upside of 22.1% from current levels. And it doesn't include those upcoming dividend payouts.

On the risk front, Macquarie added:

Key downside risks to our thesis on IDX primarily relate to weaker-than-expected volume growth and/or operating cost growth ahead of our expectations. Downside from the potential merger would be less than expected cost synergies from the group.

The Capitol Health merger

The ASX All Ords healthcare stock first announced its now completed merger with Capitol Health Limited (ASX: CAJ) in June 2024.

Commenting on that merger at the company's half year results presentation in February this year, Integral Diagnostics CEO Ian Kadish said:

The merger with Capitol Health provides us with increased scale that will improve margins and growth in metropolitan areas.

The merger synergies of at least $10.0 million before tax annually are on track, and going forward the company is ideally positioned to materially benefit from the merger synergies, MRI deregulation and the NLCSP.

The post Why Macquarie forecasts a 22% upside for this ASX All Ords healthcare stock appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

According to a note out of Macquarie, its analysts have retained their outperform rating on this medical device company's shares with an improved price target of NZ$39.30 (A$36.51). This follows the release of Fisher & Paykel Healthcare's full year results last week, which beat both on the top line and with margins. And while the company's FY 2026 guidance fell short of expectations, the broker remains positive. Especially given that despite tariff headwinds, Fisher & Paykel Healthcare still expects to achieve its 65% gross margin target by FY 2028. This is ahead of what Macquarie was forecasting. Outside this, Macquarie sees the medium to longer-term outlook as favourable, supported by uptake of new app consumables, OSA patient growth, and increased utilisation from changing clinical practices. The Fisher & Paykel Healthcare share price is trading at $34.55 today.

Integral Diagnostics Ltd (ASX: IDX)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this diagnostic imaging services provider's shares with an improved price target of $3.65. The broker is expecting Integral Diagnostics to deliver adjusted annual revenue growth of 34.4% to $631.2 million in FY 2025. Whereas adjusted operating EBITDA is expected to grow 35.7% to $124.2 million. The good news is that Bell Potter then expects this strong form to continue. It thinks the company is emerging with several tailwinds that could support double-digit earnings growth and ultimately a re-rating of its valuation. The Integral Diagnostics share price is fetching $2.45 at the time of writing.

Lynas Rare Earths Ltd (ASX: LYC)

Analysts at Morgan Stanley have retained their overweight rating and $10.00 price target on this rare earths producer's shares. According to the note, the broker is becoming increasingly positive on the company due to its potential to increase production thanks to the new Kalgoorlie facility. This bodes well for Lynas given its position as one of only two global rare earth supply producers outside of China. The Lynas share price is trading at $8.14 this afternoon.

The post Leading brokers name 3 ASX shares to buy today 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.

The S&P/ASX All Ords Index (ASX: XAO) has rallied 15% since its April low. 

There have been a few standout performers. For example, Pro Medicus Ltd (ASX: PME) has surged 57% since 7 April, while Lovisa Holdings Ltd (ASX: LOV) is up 40% over the same timeframe. 

Those who recently invested in the US have enjoyed even greater returns. Since 7 April, the S&P 500 Index (SP: .INX) has risen 19%, with several high-profile companies, such as Nvidia Corp (NASDAQ: NVDA) and Tesla Inc (NASDAQ: TSLA), up more than 50% from their recent low.

As a result, investors may think they've missed out on buying companies with significant upside. However, not all is lost. Broker Macquarie has named 3 ASX All Ords companies which could deliver returns between 30% and 77% from here.

Australian shares have increased at an average compound annual growth rate (CAGR) of 9.1% over the past 30 years, according to Vanguard. Therefore, this would be an excellent outcome.

Monash IVF Group Ltd (ASX: MVF)

The first ASX All Ords company is Monash IVF, which operates 13 permanent clinics across Australia. The company is down 40% for the year to date. Last month, it was heavily sold off due to an incident involving one of its clinics accidentally implanting another woman's embryos into a patient. This debacle attracted significant media attention, which continues to weigh on investor sentiment. 

However, Macquarie believes the ASX All Ords stock has been oversold. In a note released this week, Macquarie suggested the company is well placed to benefit from several structural tailwinds. This includes "an increase in average age of new mothers, increased male infertility, increased success rates, and increased use of donor services". 

Macquarie has a price target of $1.30 on the company, suggesting a 77% upside from the time of writing.

Vault Minerals Ltd (ASX: VAU)

Vault Minerals is a second stock named with significant upside. In stark contrast to Monash IVF, Vault Minerals has had an outstanding start to 2025, rising 34% for the year to date. 

Broker Macquarie tips Vault Minerals shares to continue rising over the next 12 months. In a recent note, the broker cited Vault Minerals' 28 May market announcement regarding its 'King of the Hills' open pit in Western Australia. Pleasingly, the company revealed that the mine has higher reserves and a longer operational life. 

The broker has placed a $0.57 price target on the ASX All Ords mining stock. This suggests 30% upside at the time of writing.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics is the third company named with significant potential upside. The company provides diagnostic imaging services to general practitioners, medical specialists, and allied professionals. 

The ASX All Ords healthcare company has also been heavily sold off this year, declining 17% for the year to date. Its share price tumbled 30% in February on its half-year result, but it has rebounded 14% since then. 

Macquarie is tipping that better days lie ahead, with a price target of $3.20. The broker expects the ASX All Ords company to "benefit from cost synergies related to the CAJ merger, leading to significant EPS accretion." This price target suggests 30% upside from here at the time of writing.

The post Top broker names 3 ASX All Ords stocks with between 30% and 77% upside appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) opened 0.29% higher on Thursday.

In a recent note to investors, Macquarie Group Ltd (ASX: MQG) has updated its position and target price on three ASX All Ords stocks in the healthcare sector. It expects some share prices could increase as much as 30-50%.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics provides diagnostic imaging services to general practitioners, medical specialists, and allied professionals. It operates under three core brands: Lake Imaging, South Coast Radiology, and Global Diagnostics. 

Company shares crashed 30% in February this year when the business recorded a statutory loss of $0.4 million in its half-year results. Investors were strongly disappointed, and many offloaded their shares. 

Integral Diagnostics attributed the loss to higher-than-expected clinical staff cost inflation, particularly in two remote regional areas. 

Since its crash, the share price has slowly gained ground and is trading 15.02% higher today at $2.45 per share.

But Macquarie thinks there is room for a much stronger recovery. In its note, the broker revealed its outperform rating at a $3.20 target price on the stock. This indicates a potential 30.61% upside from today's price.

Although Macquarie also notes that key downsides to its thesis relate to weaker-than-expected volume growth and/or operating cost growth ahead of expectations. It also points to less-than-expected cost synergies from the potential merger as another downside.

Australian Clinical Labs Ltd (ASX: ACL)

Australian Clinical Labs is a leading private provider of pathology services in Australia. 

The company's share price suffered a similar fate to Integral Diagnostics when it plummeted 16.21% in late February. The drop followed a cybersecurity incident that exposed sensitive patient data. 

At the same time, the company's market value also declined as investors responded to the company skipping full-year guidance and potentially not paying a final dividend, despite strong first-half profits, the AFR reported.

Today, the shares are trading at $2.935 a piece, down 1.84% for the day. The share price is still up 33.41% for the year.

Macquarie is neutral on the stock. In its investor note, it has assigned a $3.15 target price, indicating a potential 7.32% upside.

"The key downside to our thesis and Neutral recommendation is slower-than-expected recovery in base pathology volumes, with upside being additional synergies providing cost out and a faster recovery in base pathology volume," Macquaire said.

Healius Ltd (ASX: HLS)

Healius is an Australian healthcare company that provides pathology, diagnostic imaging, and related services to consumers and healthcare professionals. It has a large network of laboratories, collection centres, and imaging centres across Australia.

The Healius share price remained steady throughout the first quarter of the year, thanks to strong H1 2025 results.

But its share price has spiraled in May. Shares are trading at $0.9125 today, down 42.96% since 7 May.

There has been no news out of the healthcare company, but it appears that investors are concerned about the state of Australia's healthcare sector.

Healthscope went into administration this week.

Macquarie is neutral on the stock, but expects a strong recovery as investors regain confidence. The broker has placed a $1.40 target price on shares, up from $1.38 previously, which would represent a potential 53.42% increase from today's trading price.

"The key risks to our earnings forecasts, target price and rating primarily relate to variation in base business activity (pathology, diagnostic imaging), operating expense growth relative to our expectations and the final outcomes associated with the divestment of Lumus Imaging," it said.

The post Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks appeared first on The Motley Fool Australia.

If so, you're not alone!

The good news for every Aussie investor, regardless of your current holdings, is that with the election all but done and dusted, we can look forward to far greater policy certainty over the next few years than we've had over the past few.

Because if there's one thing markets despise, it's uncertainty.

With the Federal election results in mind, Macquarie Group Ltd (ASX: MQG) and MST Financial ran their slide rules over some of Labor's signature economic policies and what those foretell for ASX 200 stocks (courtesy of The Australian Financial Review).

ASX 200 stocks primed to catch Labor tailwinds

First up, Labor is aiming to increase Medicare to the tune of $8.5 billion, hoping that 90% of all GP visits can be bulk billed by 2030.

That massive expansion, as you'd expect, could well lift select ASX 200 stocks in the healthcare space.

If costs come down and more Aussies receive the primary care they require, Macquarie and MST said companies like Healius Ltd (ASX: HLS), Sonic Healthcare Ltd (ASX: SHL), Australian Clinical Labs Ltd (ASX: ACL), and Integral Diagnostics Ltd (ASX: IDX) could benefit from an increase in patient referral volumes.

Then there's Labor's $690 million four-year plan to bring down the costs of medicine in the Pharmaceutical Benefits Scheme (PBS). The analysts expect this should offer tailwinds for pharmacy stocks, including industry giant Sigma Healthcare Ltd (ASX: SIG).

Construction and mining stocks

Another big-ticket item Labor has pledged is a $10 billion spend to construct 100,000 new homes to ease the great Aussie housing crunch.

Macquarie and MST expect this could offer a boost to ASX 200 stocks like Mirvac Group (ASX: MGR) and Stockland Corp Ltd (ASX: SGP).

As the AFR reports, there could also be plenty of winners in the mining space. Labor's $7.3 billion energy plan includes $2 billion in credits for aluminium smelters that switch to renewable energy sources and $1 billion for green iron manufacturing.

Macquarie pointed to both Rio Tinto Ltd (ASX: RIO) and South32 Ltd (ASX: S32) as ASX 200 stocks that are in the sweet spot to benefit from the $2 billion aluminium credits.

The broker added that BHP Group Ltd (ASX: BHP), BlueScope Steel Ltd (ASX: BSL), and Fortescue Ltd (ASX: FMG) shares could enjoy tailwinds from the $1 billion credits for green iron production.

The post How these ASX 200 stocks are primed to gain from Labor's resounding Federal election win appeared first on The Motley Fool Australia.