What did Integral Diagnostics report?

• Revenue grew 25.6% to $788.7 million
• Operating EBITDA jumped 30.3% to $164.8 million, with margins up to 20.9%
• Operating NPAT climbed 50.1% to $47.4 million
• Operating diluted EPS increased by 23.6% to 12.6 cents
• Fully franked final dividend of 6.0 cents per share (total FY26: 9.3 cents), up 50%
• Operating free cash flow up 30.7% to $106.4 million, with conversion at 82%

What else do investors need to know?

Integral's strong FY26 performance reflects both organic growth and successful integration of the Capitol Health merger, with more than $14 million in annual synergies realised—well above initial expectations. Patient volumes and Medicare indexation drove much of the revenue uplift, and there was continued momentum in higher value imaging services like CT, MRI, and PET scans.

The balance sheet remains on solid footing. Net debt edged up slightly to $298.9 million, but leverage fell to 2.3x Operating EBITDA, within the company's target range. Management also reported a reduction in the average interest rate on core debt and confirmed all banking covenants are being met.

What did Integral Diagnostics management say?

Jason Martinez, Managing Director and CEO, said:

IDX delivered a strong FY26 result, with solid revenue growth, improved margins and disciplined execution across the business, resulting in performance in line with our guidance. This translated into enhanced shareholder returns, with operating diluted EPS increasing 23.6% and a fully franked final dividend of 6.0 cents per share, up 50.0% on the prior year.

What's next for Integral Diagnostics?

Integral Diagnostics says it's well placed to ride favourable industry trends like increasing demand for diagnostic imaging and the shift to higher-value modalities. Priorities for FY27 and beyond include disciplined core growth, selective network expansion, people and culture investment, and digital innovation.

The company is targeting sustainable revenue growth, ongoing margin expansion above 21%, further productivity gains, and improved patient access. Expected capex for FY27 is $50 million to $60 million for replacement and growth initiatives.

Integral Diagnostics share price snapshot

Over the past 12 months, Integral Diagnostics shares have declined 16%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Integral Diagnostics posts profit and dividend growth in FY26 appeared first on The Motley Fool Australia.

When one analyst thinks a business is a buy, that's an interesting idea to look into. When multiple experts thinks a business is a buy, it could be a clear opportunity for investors to consider.

Let's look at two ASX share ideas that are backed by multiple analysts where they think the share price (as indicated by the price target) could rise by at least 40% in the next year.

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners operates funerals in Australia and New Zealand; it's the second-largest operator in the industry. It currently operates from over 200 locations, including 41 cremation facilities and nine cemeteries.

According to CMC Invest, there have been four ratings on the business within the last three months. The average price target from those four analysts is $4.65, suggesting a possible rise of 41% within the next 12 months. Even the most pessimistic price target is $3.80, suggesting a possible rise of 15%.

The next decade looks positive for growth by the business – according to Propel, death volumes are expected to increase at a compound annual growth rate (CAGR) of 2.9% between 2026 to 2035.

Acquisitions are another scale-boosting growth avenue, as well as long-term growth of the funeral price. The average revenue per funeral grew by a CAGR of 2.8% per year between FY15 and the first half of FY26.

I also think the business is undervalued right now and could be a compelling long-term buy after falling more than 30% in the past year.

Integral Diagnostics Ltd (ASX: IDX)

Another ASX share that analysts right like right now is Integral Diagnostics. It describes itself as a leading provider of medical imaging services across Australia and New Zealand. It employs some of Australasia's leading radiologists and diagnostic imaging specialists.

According to CMC Invest, there have been seven ratings on the business within the last three months, with six of those being a buy and just one being a hold rating.

The average price target of those seven analysts is $3.17, suggesting a possible rise of 42% within the next year.

The ASX share is delivering rapid growth – it recently announced some preliminary FY26 numbers. Operating revenue is expected to grow by 25%, operating profit (operating EBITDA) is expected to grow by around 30% and operating net profit after tax (NPAT) is expected to grow by around 50%. 

Perhaps most importantly, operating earnings per share (EPS) is expected to grow by around 23%.

Overall, these could be two of the existing ASX shares to look at right now. I'm planning to put some money into Propel shares later this month.

The post 2 ASX shares tipped to grow 40% or more in the next 12 months appeared first on The Motley Fool Australia.

I've selected two companies in the health sector which the team at Jarden has just released new reports on.

Let's see what they're saying.

Imricor Ltd (ASX: IMR)

In late July, Imricor launched its US commercialisation program and has since signed up two customers to use its NorthStar cardiac catheterisation technology.

The company said several US hospitals were also in the final stages of purchasing, "with revenue from initial NorthStar sales expected to comfortably exceed total revenue generated by the European business in CY2025''.

The company also launched a new business vertical in the cardiovascular space, targeting a US market with more than 2000 hospitals.

The Jarden analysts said a focus was the company continuing to pursue full Food & Drug Administration (FDA) approval for its electrophysiology ablation platform, which was more important than the company's financials.

That said, Imricor's net loss of US$15.1 million was higher than Jarden's estimate of US$13.6 million.

The Jarden team added:

We continue to see this as an attractive, catalyst rich story with (i) two US hospitals now signed for NorthStar (with more in the final stages of purchasing), (ii) Imricor opening a new vertical to more than 2000 US hospitals (across adults and paediatrics), and (iii) 14 of 15 products for the full platform now approved or under FDA review. We believe Imricor is approaching a genuine commercial inflection point as it converts nearly two decades of platform development into a recurring, high-margin revenue stream.

Jarden increased its price target on Imricor by 5 cents to $3.35 compared to $2.05 currently.

Integral Diagnostics Ltd (ASX: IDX)

The Jarden analysts said Integral Diagnostics' EBITDA of $164.5 million was a small miss to consensus estimates; however, the company provided little commentary around the result, with more detail expected later this month.

Jarden added:

We have reconsidered the outlook for FY27 and FY28 by processing a slowdown in the earnings trajectory as MRI deregulation and Bulk Billing do not appear to be underpinning earnings growth as much as we expected.

Integral Diagnostics said in its recent release that it expected revenue to be $788-$790 million, up about 25% on the previous year, while its net profit would be $47-$48 million, up about 50%.

Jarden reduced their price target on Integral Diagnostics shares by 30 cents to $2.95. This is still well above the current share price of $2.20.

The post 2 ASX healthcare stocks tipped to return 34% to 63% appeared first on The Motley Fool Australia.

What did Integral Diagnostics report?

• Revenue expected at $788–$790 million, up ~25% from FY25 ($628.0m)
• Operating EBITDA forecast at $164–$165 million, up ~30% from FY25 ($126.5m)
• Operating EBITDA margin of ~20.8%–21.0%, 80 basis points higher vs last year
• Operating NPAT projected at $47–$48 million, up ~50% from FY25 ($31.6m)
• Diluted operating EPS estimated at 12.5c–12.7c, up ~23% from FY25 (10.2c)
• Net Debt to Operating EBITDA improved to 2.3x from 2.6x

What else do investors need to know?

Integral Diagnostics' preliminary numbers include a full twelve-month contribution from the Capitol Health acquisition, which previously had only a partial year impact. Capital expenditure was $50 million, falling within the company's guidance range.

In leadership news, Integral Diagnostics has appointed Ms Jenny Martin as its new Chief Financial Officer. She brings over 25 years' experience in finance and healthcare technology, taking over from outgoing CFO Craig White, who will retire following an orderly transition period.

What's next for Integral Diagnostics?

Shareholders can expect audited FY26 results as scheduled on 25 August 2026, with a results roadshow planned featuring both the new and outgoing CFO. The leadership transition, coupled with improved balance sheet discipline and continued investment, positions IDX for its next stage of growth across Australia and New Zealand.

Integral Diagnostics' outlook includes a focus on operational discipline, integrating recent acquisitions, and enhancing its unique medical leadership model to support future expansion.

Integral Diagnostics share price snapshot

Over the past 12 months, Integral Diagnostics shares have declined 20%, trailing the All Ordinaries Index (ASX: XAO), which has risen 5% over the same period.

View Original Announcement

The post Integral Diagnostics: FY26 results and new CFO appointment appeared first on The Motley Fool Australia.

Share prices are always changing, so the available opportunities can change month to month. When we look across the ASX share market, the following two businesses are among the most widely backed.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics describes itself as a leading provider of medical imaging services across Australia and New Zealand.

According to the Commsec collation of analyst opinions, there are currently 12 buy ratings on the business, with just one hold and one sell.

We should also look at the price target of the business, which tells us what analysts think the share price will do over the next 12 months. A price target is just an estimate though, not a guarantee of what's going to happen.

According to CMC Invest, of three analyst price targets issued within the last three months, the average price target is $3.19. That implies a possible rise of 53% over the next year, if the analysts are right.

The company's latest result saw plenty of growth following the merger with Capitol Health, with enhanced operational scale and a broader network, combined with synergies.

The company reported organic revenue growth of 7.4% from all sources in Australia. Total revenue grew 55.6%, operating profit (EBITDA) rose 75.6% and operating net profit grew 154.6% to $22.3 million. Operating earnings per share (EPS) rose by 66.2% to 5.9 cents.

This growth enabled the ASX share to hike its interim dividend per share by 32% to 3.3 cents.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share with significant backing by expert analysts. The global enterprise resource planning (ERP) software business currently has 13 buy ratings on the business, according to CommSec.

It has clients across a range of industries including businesses, local councils, government organisations and universities.

According to CMC Invest, of eight recent ratings by analysts within the last three months, the average price target is $31.81. That implies a possible rise of around 6% within the next year.

The business expects to grow its profit at a significant pace during the 2026 financial year.

It expects to grow its FY26 annual recurring revenue (ARR) by between 16% to 18%, while its profit growth is expected to be between 18% to 20%.

If profit keeps growing in the high-teens year after year then it's on track for a very pleasing future, in my opinion (and according to broker analysts too).

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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.