The analysts at Macquarie certainly think there's more value in the shares than is reflected in the current share price, recently issuing a new research report with a bullish share price target. We'll get to that shortly.

First, let's see what the company reported.

Surging revenue with strong US growth

PolyNovo, which develops and sells innovative wound dressings, said recently that its revenue for FY26 was up 20.3% to $150 million.

The company's operating cash flow was up 674.2% to $24 million, and free cash flow improved from negative $10.1 million to $10.4 million.

On the operational front, the company said:

Construction of PolyNovo's new manufacturing facility is complete, and validation activities are progressing as planned. Capital expenditure requirements are largely complete, with $1.5 million outstanding for additional machinery which is expected to be paid for in the first half of FY27.  

The company added that with respect to a fire at its R&D facility in late 2025, it had received $3.5 million from insurers and was working towards "recovery of remaining costs associated with the rebuild and restoration of the facility''.

PolyNovo Chief Executive Officer Bruce Peatey said:

We're pleased to have finished the financial year strongly, with record sales recorded in the U.S. in June and manufacturing production output increasing significantly compared to H1, increasing gross margin and profitability for the year and therefore an improved cash position. The competitive environment in the U.S. continues to evolve following significant shifts to the reimbursement landscape, and additionally we've experienced seasonal decline to the presentation of major burns across many direct markets. However, the performance of our products is undisputed. The strategy employed to date, leveraging our strength in major trauma and burns to drive clinician confidence elsewhere, is succeeding, as we see total revenue associated with other complex wound indications growing at a faster rate than large burns.

Mr Peatey said the company now had 100 frontline staff in the US, and demand for the company's NovoSorb product continued to grow, supported by clinical evidence.

He added that, "with expanded manufacturing capacity, new commercial opportunities and product catalysts ahead, we believe the Company enters FY27 well positioned to continue delivering sustainable growth''.

PolyNovo shares looking cheap

Macquarie said while revenue growth was strong, the numbers missed expectations.

They revised their price target for the company down from $1.75 to $1.30, still well above the 83.75 cents at the time of writing.

The stock is 35.1% lower over a 12-month period. The company is valued at $590.7 million.

The post Down 35% for the year, is it time to buy this beaten-down ASX biotech? appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to fall on Friday following a disappointing night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 65 points or 0.75% lower this morning. In late trade on Wall Street, the Dow Jones is down 1%, the S&P 500 is down 1.3%, and the Nasdaq is 2.3% lower. Tesla (NASDAQ: TSLA) shares are down 14% and weighing heavily on the latter.

Oil prices jump

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a great finish to the week after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.8% to US$91.87 a barrel and the Brent crude oil price is up 6.65% to US$100.33 a barrel. This was driven by reports that tankers were struck off Saudi Arabia.

Polynovo shares downgraded

Polynovo Ltd (ASX: PNV) shares will be in focus today after the medical device company was downgraded by the team at Bell Potter. According to the note, the broker has downgraded Polynovo's shares to a hold rating with a heavily reduced price target of $1.00 (from $2.00). It said: "We conclude that the top line growth rate is below our expectation and accordingly our target price is adjusted to reflect this change. Pending the full year earnings update, our initial reaction has been to slash the growth forecast to low double digit percentage growth going forward. For FY27 we now expect net sales to increase by ~$15m relative to the $20m increase achieved in FY26. We are particularly concerned by sequential period decline in US revenues in 2H26 in addition to the absence of a strategy in the outpatient care market."

Gold price tumbles

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.5% to US$4,048.5 an ounce. Rate hike concerns are weighing on the precious metal. Also, Newmont will be releasing its quarterly update this morning.

Buy Generation Development shares

Morgans sees value in Generation Development Group Ltd (ASX: GDG) shares. In response to its fourth-quarter update, the broker has retained its buy rating with an improved price target of $6.89 (from $6.28). It said: "GDG has provided a 4Q26 update. We saw this as a strong result highlighted by record Investment Bond sales, and importantly, Evidentia beating expectations after a run of consecutive misses. We lift our GDG EPS by +1%-5% over the forecast period, on higher sales and FUM expectations in both key divisions. Our price target is set at A$6.89 (previously A$6.28). We maintain our BUY recommendation, with >20% TSR upside."

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

What did PolyNovo report?

• Group revenue rose 16.1% to $150 million (20.3% growth at constant currency).
• Commercial sales climbed 16.7% to $138.4 million, with US commercial sales up 15.6% to $102.1 million.
• NovoSorb MTX commercial sales nearly doubled, up 89.6% over the year.
• Operating cash flow improved to $24.0 million, including $3.5 million from an insurance claim.
• Free cash flow turned positive at $10.4 million (from negative $10.1 million the previous year).
• Cash and cash equivalents stood at $35.4 million as at 30 June 2026.

What else do investors need to know?

PolyNovo completed construction of its new manufacturing facility this year, helping to increase production output and set the stage for expanded commercial opportunities. Only $1.5 million of the total capital expenditure is outstanding, relating to additional machinery planned for FY27.

The company is continuing to finalise its insurance claim following a fire at its R&D Innovation Centre in late 2025. PolyNovo has received $3.5 million in payments so far, with further amounts expected in the first half of FY27. The finalisation of EBITDA and NPAT figures is pending as full accounts are completed.

What did PolyNovo management say?

Bruce Peatey, Chief Executive Officer of PolyNovo, said:

We're pleased to have finished the financial year strongly, with record sales recorded in the U.S. in June and manufacturing production output increasing significantly compared to H1, increasing gross margin and profitability for the year and therefore an improved cash position. The competitive environment in the U.S. continues to evolve following significant shifts to the reimbursement landscape, and additionally we've experienced seasonal decline to the presentation of major burns across many direct markets. However, the performance of our products is undisputed. The strategy employed to date, leveraging our strength in major trauma and burns to drive clinician confidence elsewhere, is succeeding, as we see total revenue associated with other complex wound indications growing at a faster rate than large burns.

What's next for PolyNovo?

Looking ahead, PolyNovo says it is well placed to keep delivering sustainable growth into FY27, supported by expanded manufacturing capacity and further product catalysts. The company remains focused on the commercial launch of NovoSorb SynPath and capitalising on growing use of its MTX product.

Management also highlighted ongoing investment in its United States sales team, expanded market presence, and new leadership appointments, following a recently completed strategy review. PolyNovo will detail its full FY26 results and updated strategy in August 2026.

PolyNovo share price snapshot

Over the past 12 months, PolyNovo shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post PolyNovo FY26 earnings: Record revenue and cash flow appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) continues to be the most shorted ASX share after its short interest increased again to 18.5%. This uranium producer's shares have come under significant pressure since the release of a very disappointing quarterly update. Lotus revealed weak production and a sizeable cash burn. There are now concerns that another capital raising will be needed later this year.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.3%. Short sellers appear to be doubting this pizza chain operator's turnaround plans.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 14.5%. This radiopharmaceuticals company has come under pressure after struggling to gain key US FDA approvals.
• Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is down since last week. This uranium miner's uncertain production outlook beyond 2026 has weighed on sentiment.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.7% of its shares held short, which is up week on week again. This wine giant's recent and encouraging trading update hasn't put off short sellers.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.6%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator's shares rocketed in response to the closure of its loss-making US operations.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is up since last week. This may be due to concerns that higher interest rates and rising fuel costs could weigh on the automotive market.
• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top ten with short interest of 11.4%. Short sellers may believe the Middle East conflict could weigh on this travel agent's performance.
• Zip Co Ltd (ASX: ZIP) has 11.2% of its shares held short, which is down again week on week. Short sellers may be expecting this buy now pay later provider's performance to be impacted by weak consumer spending and higher interest rates.
• Polynovo Ltd (ASX: PNV) has 11.2% of its shares held short, which is down week on week again. This medical device company's shares trade on a high PE ratio. Short sellers may believe this premium is unjustified.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) remains the most shorted ASX share after its short interest rose to 17.2%. Short sellers have been loading up on this uranium producer's shares following a disastrous quarterly update. Lotus reported weak production and a sizeable cash burn. Many in the market are now expecting another capital raising later this year.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain flat at 15.6%. Short sellers don't appear to believe this pizza chain operator's turnaround plans will deliver a meaningful improvement in its performance.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15%. This radiopharmaceuticals company has struggled with key US FDA approvals over the past 18 months.
• Boss Energy Ltd (ASX: BOE) has short interest of 14.3%, which is up since last week. The market has concerns over this uranium miner's production outlook from 2027.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14.1%, which is up week on week. However, short sellers will have been disappointed to see this quick service restaurant operator's shares rocket last week after it announced the closure of its US operations.
• Polynovo Ltd (ASX: PNV) has 13.6% of its shares held short, which is down week on week. Short sellers appear to believe the medical device company's shares are overvalued given its high PE ratio.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.5% of its shares held short, which is up week on week. Short sellers continue to target the wine giant despite a recent and encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 11.6% of its shares held short. This is down since last week. Short sellers may believe the buy now pay later provider's performance could be impacted by weak consumer spending and higher interest rates.
• DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is up since last week. Short sellers have been increasing their positions after the counter-drone technology company revealed that it was the subject of an ASIC investigation.
• CAR Group Limited (ASX: CAR) has entered the top ten with short interest of 11.2%. Short sellers may believe that trading conditions are tough and the auto listings company could underperform expectations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) is now the most shorted ASX share with short interest of 16%, which is up week on week. This uranium producer's shares have come under pressure following a disastrous March quarter which saw weak production and a sizeable cash burn. Many in the market are now expecting another capital raising later this year.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to have doubts over this pizza chain operator's turnaround plan.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.3%. This radiopharmaceuticals company's shares have come under significant pressure over the past 18 months amid US FDA approval challenges.
• Polynovo Ltd (ASX: PNV) has 14.4% of its shares held short, which is up week on week. This medical device company's shares have a premium valuation that short sellers don't appear to believe is justified.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.9%, which is down week on week. This quick service restaurant operator's US operations have been struggling, casting doubts on its future in the key market.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is flat since last week. There are major concerns over this uranium miner's production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.9% of its shares held short, which is up week on week. Short sellers aren't giving up on the wine giant despite it recently releasing an encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 12.2% of its shares held short. This is up slightly since last week. Short sellers continue to target the buy now pay later provider despite it delivering a strong update this month.
• DroneShield Ltd (ASX: DRO) has 11.1% of its shares held short, which is up since last week. Last week, the counter-drone technology company revealed that it was the subject of an ASIC investigation.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.9%, which is up week on week. Short sellers may believe that the Middle East conflict will weigh on the travel agent's growth.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) has become the most shorted ASX share again after its short interest rose to 15.9%. A poor update from the Domino's US business has cast further doubt on this pizza chain operator's turnaround.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.6%. Short sellers have been targeting this radiopharmaceuticals company this year amid US FDA approval challenges.
• Lotus Resources Ltd (ASX: LOT) has short interest of 15.1%, which is up sharply week on week. Short sellers have been loading up on this uranium producer's shares following a disastrous March quarter which saw weak production and a sizeable cash burn. This has many in the market expecting another capital raising later this year.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is flat week on week. It is possible that short sellers think this medical device company's shares are overvalued due to their premium valuation.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14%, which is up week on week. Short sellers appear to be targeting the quick service restaurant operator due to the underperformance of its US operations.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is up since last week. The market is concerned about this uranium miner's production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.5% of its shares held short, which is down week on week. Short sellers have been closing positions after the struggling wine giant released an encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 11.9% of its shares held short. This is up slightly since last week. This is despite the buy now pay later provider delivering both a strong quarterly update last month and an equally strong trading update last week.
• DroneShield Ltd (ASX: DRO) has 10.8% of its shares held short, which is down since last week. This may be due to valuation concerns.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.7%, which is down week on week. A stronger than expected trading update from the travel agent appears to have discouraged short sellers.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The world is waiting for Iran's response to a US proposal to end the war and re-open the Strait of Hormuz.

The Strait of Hormuz is a key shipping channel for Middle Eastern oil and gas, with about 20% of the world's supply transported through it.

For now, the Strait remains effectively closed for a tenth week amid fresh clashes between the US and Iran overnight.

Meanwhile, brokers have indicated continuing confidence in several ASX 200 shares by reaffirming their buy ratings this week.

Let's take a look.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2.57, down 2.7% today.

Over the past 12 months, this ASX 200 financial share has risen 40%.

That sounds impressive, but it hides the fact that Zip shares have weakened 23% in the calendar year to date.

UBS remains confident that Zip shares will rebound.

The broker renewed its buy rating this week with a 12-month price target of $3.10.

This suggests a potential 20% upside ahead.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $73.87, down 0.8% today.

Over the past six months, this ASX 200 retail share has fallen 25%.

Morgans renewed its accumulate rating on JB Hi-Fi shares with a lowered target of $82.90 this week.

This suggests a potential 12% upside ahead.

Morgans said:

JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories.

Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity.

We see this as likely reflecting potential margin pressure in the 4Q.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is $1.55, down 2.2% on Friday.

Over the past month, this ASX 200 gold mining share has fallen 17%.

UBS renewed its buy rating on Bellevue Gold shares this week.

The broker shaved its 12-month price target to $2, suggesting a 28% upside ahead.

CSL Ltd (ASX: CSL)

The CSL share price is $120.61, down 1.2%, after hitting a 9-year low of $119.61 today.

CSL shares have halved in value over the past 12 months.

UBS renewed its buy rating on CSL shares today with a reduced price target of $205.

This indicates a potential 68% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $10.73, down 1.5% today.

This ASX 200 travel share is struggling in 2026, down 29% in the calendar year to date.

Morgans remains confident of a turnaround though.

The broker renewed its buy rating on Flight Centre shares this week.

However, it slashed its 12-month price target from $18.05 to $14.55.

This still suggests a potential 35% capital gain ahead. 

Morgans said:

Surprisingly, FLT has maintained its FY26 earnings guidance. It noted that the conflict is creating near-term uncertainty and temporarily disrupting international travel patterns. It is having a more significant impact on Leisure (April profit was down ~A$10m on the pcp).

While the reiteration of guidance was better than feared, our concern is that following its key trading period (May-June), FLT will likely need to revise guidance as we expect leisure demand will remain weak.

If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong. 

Polynovo Ltd (ASX: PNV) 

The Polynovo share price is $1.01, down 2.7% today.

This ASX 200 healthcare share has lost almost a third of its valuation over the past 12 months.

Morgans maintained its buy rating on Polynovo shares this week.

The broker lowered its price target from $1.83 to $1.56, which still implies a great potential upside of 54%.

Morgans commented:

We have reviewed our FY26 and FY27 forecasts and conclude the company is set to deliver a strong 2H26 and continue that growth trajectory into FY27.

PNV is one of the most shorted stocks on the ASX. If PNV can demonstrate a growing profit profile the short position could be reduced materially. 

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.92, down 1.8% today.

Over the past month, this ASX 200 financial share has fallen 10.5%.

Morgans renewed its buy rating on Magellan shares today.

The broker trimmed its 12-month price target from $11.99 to $11.19.

This suggests a potential 24% upside ahead.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is $12.86, down 1.5% on Friday.

This ASX 200 healthcare share has fallen 32% in the calendar year to date.

However, Bell Potter is confident that the stock price will come back.

The broker renewed its buy rating today with a 12-month price target of $22.

This implies a near-70% capital gain ahead.

The post 8 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

Let's have a look at what stocks they like at the moment.

Polynovo Ltd (ASX: PNV)

This healthcare company sells its flagship product, NovoSorb, a biodegradable wound dressing that serves as a scaffold for wound regeneration.

In the first half of FY26, the company achieved revenue of $68.2 million from NovoSorb sales, up 26% on the same period the previous year, with strong sales momentum in offshore markets.

The company also has multiple products in its research and development pipeline, and is progressing its key product through regulatory pathways for wider use.

The Morgans team said it had reviewed its FY26 and FY27 forecasts for Polynovo, "and concluded the company is set to deliver a strong 2H26 and continue that growth trajectory into FY27''.

They note that the company will need a strong second half to meet its forecast revenue of $148 million, but they said, "We are confident PNV can deliver on our FY26 forecasts, noting we sit slightly below consensus''.

The Morgans team noted that Polynovo was among the most shorted stocks on the ASX, but they believe this could change.

As they said:

We believe that if PNV can achieve FY26 consensus and if FY27 consensus remains stable which currently has revenue growth of 22% and EBITDA more than doubling, the short position could be reduced materially. It is certainly one stock to watch coming into the August results.

Morgans has a price target of $1.56 on Polynovo shares, compared with the current share price of $1.04.

Digico Infrastructure REIT (ASX: DGT)

This cloud infrastructure provider recently sold a major asset in Chicago for US$750 million, which was a 5% premium to the purchase price.

This has allowed the company to reduce net debt from $1.5 billion to about $500 million and reduce its gearing from 36% to 17%.

The company said while announcing the sale this week:

Together, these initiatives materially strengthen the balance sheet, enhance securityholder returns, and provide financial flexibility to explore capital management initiatives, including returning any excess capital through enhanced distributions.

The company said it was also looking at monetising its LAX1 and LAX2 sites.

Morgans said the Chicago deal was positive as it derisked the company.

Morgans maintained its buy rating on the stock but increased its price target markedly, from $2.70 to $3.60.

The post Morgans names two ASX shares to buy right now for returns of 20% to 50% appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Telix Pharmaceuticals Ltd (ASX: TLX) remains the most shorted ASX share despite its short interest easing to 16.1%. This radiopharmaceuticals company has been facing US FDA approval challenges. In addition, some short interest could be attributable to convertible-arbitrage hedging tied to Telix's US$600 million convertible bond refinancing.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease slightly to 15.5%. A poor update from Domino's Pizza US last week has cast further doubt on the pizza chain operator's turnaround.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is up again since last week. Given that this medical device company's shares trade on high earnings multiples, short sellers may think they are overvalued.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.2% of its shares held short, which is up week on week. Tough trading conditions in the wine market have weighed on the Penfolds owner's performance.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.1%, which is down week on week. Short sellers appear to have been closing positions in the quick service restaurant operator after the release of a better than expected update.
• Zip Co Ltd (ASX: ZIP) has 11.8% of its shares held short. This is down slightly week on week. Short sellers aren't giving up on this buy now pay later provider despite its strong quarterly update.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.7%, which is down week on week. This may be due to concerns that travel demand could be impacted by the Middle East conflict and higher airfares.
• Lotus Resources Ltd (ASX: LOT) has short interest of 11.5%, which is up week on week. Last week, this uranium producer's shares crashed after retracting previously reported figures while it works through reconciliation processes.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.45%, which is down since last week. There are concerns about this uranium miner's uncertain production outlook beyond 2026.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is down since last week. Valuation concerns are likely to be why short sellers are targeting this counter-drone technology company.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The healthcare sector continues to battle significant headwinds, including a weaker US dollar, US tariffs, and higher labour costs.

Experts say the sector rout provides an opportunity to pick up high-quality ASX healthcare shares at a good price.

On The Bull this week, three experts explain their buy ratings on three ASX healthcare shares.

Sigma Healthcare Ltd (ASX: SIG) 

The Sigma Healthcare share price is $2.75, down 0.9% today and down 11% over the past six months.

Sigma Healthcare shares hit a record $3.28 apiece in June 2025 after the completion of the Chemist Warehouse merger in February.

The ASX healthcare has tumbled 16% from its historical peak, and Morgans analyst Damien Nguyen says it's now a buy.

He explains why:

SIG is a leading wholesale distributor and retail pharmacy franchisor with operations in Australia, New Zealand, Ireland and the United Arab Emirates.

It has a solid balance sheet with conservative leverage and strong operating cash flows.

We believe SIG can continue to widen margins through expanding labels it owns and exclusive products.

We expect improving operating leverage through efficiencies in the supply chain and consolidation in distribution centres.

A softer share price provides a compelling buying opportunity for long term focused investors.

Polynovo Ltd (ASX: PNV) 

The Polynovo share price is steady at $1 on Tuesday, but the stock has lost 29% of its value over the past six months.

Polynovo shares are well off their 52-week high of $1.72 set in May last year.

Stuart Bromley from Medallion Financial Group has a buy rating on this ASX healthcare share. 

Bromley said: 

The company provides dermal regeneration solutions via its NovoSorb biodegradable polymer technology.

The company's skin repair product continues to grow revenues. Group sales of NovoSorb were up 26 per cent in the first half of fiscal year 2026 when compared to the prior corresponding period. US sales were up 25.3 per cent.

The company has the capacity and product offerings to comfortably meet growing demand.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $138.01, down 0.8% today and down 51% over the past six months.

Pro Medicus designs and distributes medical imaging software and services to healthcare providers around the world.

The Pro Medicus share price hit a record of $336 last July following an extraordinary two-year run.

The ASX healthcare share has since fallen by almost 60%, prompting a buy rating from Bromley.

He said: 

The share price is down significantly in the past year on fears of artificial intelligence impacting the business.

But the company continues winning large and long term contracts. PME recently renewed a five-year, $37 million contract with Northwestern Medicine based in Chicago. The renewal comes with increased minimums and a higher fee per transaction.

In our view, PME presents a rare chance to buy a world class software play at a significant discount.

The post 3 ASX healthcare shares to buy amid sector rout: experts appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Telix Pharmaceuticals Ltd (ASX: TLX) has become the most shorted ASX share after its short interest increased to 16.2%. While short sellers have been targeting this radiopharmaceuticals company due to US FDA approval challenges, this latest increase is likely attributable to convertible-arbitrage hedging tied to Telix's US$600 million convertible bond refinancing.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 15.6%. There appear to be doubts around this pizza chain operator's turnaround strategy.
• Polynovo Ltd (ASX: PNV) has 14% of its shares held short, which is up since last week. This medical device company's shares trade on high earnings multiples. It seems that short sellers think they could be overvalued.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.9%, which is up week on week. Although this quick service restaurant operator released a better than expected update this month, short sellers aren't giving up. They seem to have concerns over its struggling US business.
• Treasury Wine Estates Ltd (ASX: TWE) has 13% of its shares held short, which is flat since last week. Short sellers will have been disappointed to see this wine giant's shares jump last week following a surprisingly positive trading update.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12.5%, which is down week on week. There are concerns that travel demand could be impacted by the Middle East conflict and higher airfares.
• Zip Co Ltd (ASX: ZIP) has 11.9% of its shares held short. This is down week on week. Some short sellers may have been closing positions after the buy now pay later provider impressed with its quarterly update this month.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.6%, which is up since last week. There are concerns about this uranium miner's production outlook beyond 2026.
• DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is down since last week. Valuation concerns may be why short sellers are targeting this counter-drone technology company.
• Lotus Resources Ltd (ASX: LOT) has short interest of 11%, which is flat week on week. It is another uranium producer that short sellers are targeting.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) remains the most shorted ASX share after its short interest rose to 15.4%. This pizza chain operator is undertaking a turnaround strategy and short sellers don't appear confident it will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 13.9%, which is down since last week. Short sellers may be betting against this radiopharmaceuticals company successfully getting its products approved by the US FDA.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. Short sellers aren't giving up on this quick service restaurant operator despite its shares rocketing this month after reporting a big improvement in its performance.
• Polynovo Ltd (ASX: PNV) has 13.7% of its shares held short, which is down since last week. Short sellers seem to think this medical device company's shares are overvalued. However, both Bell Potter and Morgans believe they could rise approximately 80%.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 13%. This is likely to have been driven by concerns that the wine giant will continue to struggle with consumer spending pressures and distributor disruption.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12.9%, which is up week on week. Short sellers appear to believe that travel demand could be impacted by the Middle East conflict.
• DroneShield Ltd (ASX: DRO) has 12.7% of its shares held short, which is up since last week. This counter drone technology company recently announced the sudden exit of its CEO and chair. This disruption and valuation concerns could be weighing on sentiment.
• Zip Co Ltd (ASX: ZIP) has short interest of 12.5%. Unfortunately for short sellers, this buy now pay later provider impressed the market with its quarterly update last week.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.5%, which is down since last week. This uranium miner's production outlook is uncertain beyond 2026. Short sellers appear to be betting on production falling more than the market is predicting.
• Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11%. It is another uranium producer that short sellers are targeting.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share after its short interest remained flat at 15.3%. Short sellers appear to have doubts that the pizza chain operator's turnaround strategy will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.6%, which is up since last week. Unfortunately for short sellers, this radiopharmaceuticals company's shares stormed higher last week after the US FDA accepted its NDA for Pixclara
• Polynovo Ltd (ASX: PNV) has 14% of its shares held short, which is down since last week. This high level of short interest may be due to valuation concerns. The medical device company's shares are trading on high earnings multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.7%, which is down week on week. Unfortunately for short sellers, this quick service restaurant operator's shares rocketed last week after it reported a big improvement in its performance.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12.5%. This wine giant is struggling due to consumer spending pressures and distributor disruption.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12%, which is up slightly week on week. Short sellers may believe that travel demand could be impacted by the Middle East conflict.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.7%, which is down since last week. This uranium miner's production outlook beyond 2026 is uncertain and attracting short sellers.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.6%, which is down slightly since last week. This infection prevention technology company's recent performance has been disappointing. Short sellers don't appear confident a change is coming.
• DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is up since last week. Last week, this counter drone technology company announced the sudden exit of its CEO and chair.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 11.2%. Later this week, the buy now pay later provider will be releasing its third-quarter update. Short sellers appear to believe it could disappoint.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues its run as the most shorted ASX share after its short interest rose slightly to 15.3%. It seems that short sellers are betting against the pizza chain operator's turnaround strategy.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.3%, which is down slightly since last week. This radiopharmaceuticals company failed to gain FDA approval for a couple of its therapies last year. Short sellers don't appear confident that 2026 will be any better despite a recent resubmission.
• Polynovo Ltd (ASX: PNV) has short interest of 14.2%, which is flat since last week. This may be due to valuation concerns with the medical device company's shares trading on high earnings multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14.1%, which is up week on week. This quick service restaurant operator's shares have fallen heavily over the past 12 months due to their premium valuation and concerns that its US expansion could be a failure. The US was supposed to be its largest growth opportunity.
• Boss Energy Ltd (ASX: BOE) has short interest of 12.1%, which is up again since last week. There are major concerns over this uranium miner's production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall again to 11.6%. This wine giant is battling consumer spending pressures and distributor disruption. Short sellers appear to believe it will get worse before it gets better.
• Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 11.8%. This infection prevention technology company's performance has underwhelmed in recent times. It seems that short sellers aren't confident a change is coming.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.8%, which is up week on week again. Short sellers have been loading up on the travel agent's shares since the Middle East conflict. There are concerns it could have a negative impact on travel markets.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is up since last week. Short sellers appear to think this counter drone technology company's shares are overvalued after surging over the past 12 months.
• Lotus Resources Ltd (ASX: LOT) has short interest of 10.2%. This uranium producer is one of a number of stocks in the industry being targeted by short sellers, with several sitting just outside the top ten.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) remains the most shorted ASX share despite its short interest easing to 15.2%. Short sellers appear to be doubting that the struggling pizza chain operator's turnaround strategy will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.5%, which is down since last week. This radiopharmaceuticals company has faced delays gaining FDA approval for a couple of its therapies recently. Short sellers don't appear to believe a change is coming in 2026.
• Polynovo Ltd (ASX: PNV) has short interest of 14.2%, which is up again since last week. This may have been driven by valuation concerns with the medical device company's shares trading on high multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This burrito seller's shares have been under significant pressure since the release of its results last month which revealed that it is struggling in the United States market. This was supposed to be its largest growth opportunity.
• Boss Energy Ltd (ASX: BOE) has short interest of 12%, which is up since last week. There are concerns over this uranium miner's production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall meaningfully to 11.9%. It has been a tough period for this wine giant, which is battling consumer spending pressures and distributor disruption.
• Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11.1%. It is one of a number of ASX uranium stocks being targeted by short sellers.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.9%, which is up week on week again. Short sellers may believe the Middle East conflict will impact travel markets.
• DroneShield Ltd (ASX: DRO) has entered the top ten with 10.8% of its shares held short. Short sellers may believe this counter-drone technology company's shares are overvalued after surging over the past 12 months.
• IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is down week on week once again. Short sellers have been targeting this student placement and language testing company due to changes to visa rules in key markets.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share with short interest of 16%. This is up week on week. Short sellers appear doubtful that the struggling pizza chain operator's turnaround strategy will be a success.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 15.3%, which is up again since last week. This radiopharmaceuticals company has been struggling with FDA approvals. It seems that short sellers don't believe regulators will be approving its therapies any time soon.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 15.1%. This wine giant has been battling very tough trading conditions, with consumers focusing on value rather than its premium wines.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This may be due to the burrito seller struggling the United States market, which was supposed to be its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 13.3%, which is up again since last week. This medical device company's shares trade with a premium valuation.
• Nanosonics Ltd (ASX: NAN) has 11.7% of its shares held short, which is up week on week again. This infection prevention company's performance has been underwhelming in FY 2026, with profit before tax falling 3% during the first half.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.2%, which is down since last week. Short sellers continue to close positions in the uranium producer, which was the most shorted ASX share for much of 2025.
• IDP Education Ltd (ASX: IEL) has 10.7% of its shares held short, which is down week on week again. Short sellers have been targeting this student placement and language testing company due to unfavourable changes to visa rules in key markets.
• Lynas Rare Earths Ltd (ASX: LYC) has short interest of 10.5%, which is flat week on week. This is likely due to valuation concerns after the rare earths producer's shares rocketed over the past 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.3%, which is up week on week. There are concerns that the travel agent won't deliver on its revenue margin targets, especially given how the war in the Middle East could impact travel markets.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) is the most shorted ASX share with short interest of 15.6%. It appears that short sellers believe the struggling pizza chain operator's turnaround strategy will not be a success.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.8%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.2%, which is up since last week. This radiopharmaceuticals company has been facing delays with FDA approvals. Short sellers don't appear confident that regulators will be approving its therapies any time soon.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This burrito seller continues to struggle and make a loss in the United States market, which was supposed to be its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 13%, which is up since last week. This medical device company's shares trade on sky-high earnings multiples.
• Nanosonics Ltd (ASX: NAN) has 11.4% of its shares held short, which is up week on week. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.4%, which is down significantly since last week. With the uranium producer's shares down 65% since the start of July on production concerns, some short sellers may be buying back shares to lock in their gains.
• IDP Education Ltd (ASX: IEL) has 10.8% of its shares held short, which is down week on week. This student placement and language testing company has been battling changes to visa rules in key markets.
• Lynas Rare Earths Ltd (ASX: LYC) has short interest of 10.5%, which is up since last week. This may be due to valuation concerns and the rare earths producer's shares rocketed over the past 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.7%, which is down week on week. There are concerns that the travel agent won't deliver on its revenue margin targets.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share with short interest of 16.1%, which is down since last week. There are concerns over this uranium miner's production outlook.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to believe the struggling pizza chain operator's turnaround strategy will fail. Last month, it reported a 2.5% decline in same store sales during the first half.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.4%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This burrito seller's shares crashed last month in response to the release of a disappointing half-year result. It continues to make a loss in the United States, which was supposedly its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 12.9%, which is up since last week. This medical device company could have been targeted due to its lofty valuation.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.4%, which is flat since last week. This radiopharmaceuticals company has been facing delays with FDA approvals.
• IPH Ltd (ASX: IPH) has short interest of 12.3%, which is up week on week. This intellectual property services company has been battling weaker volumes and market share losses.
• IDP Education Ltd (ASX: IEL) has 11.8% of its shares held short, which is up week on week. Changes to visa rules in key markets have weighed on sentiment and this student placement and language testing company's performance.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.8%, which is up week on week. There are concerns that the travel agent won't deliver on its revenue margin targets.
• Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 10.3%. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half. Short sellers may believe this trend will continue.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The ASX 300 stock fell 1.5% to 90.5 cents.

This means that the medical device company's shares are now down approximately 50% since this time last year.

The good news is that Bell Potter believes this could have created a buying opportunity for investors.

What is the broker saying?

Bell Potter was a touch disappointed with the ASX 300 stock's performance during the first half of FY 2026. It notes that its revenue and EBITDA were short of consensus expectations. The broker said:

PNV had pre released 1H26 product sales revenue of $68.2m ↑ 26% vs pcp. Total revenues $70.4m (including BARDA income $2.0m) 3% below our previous forecast of $72.6m. EBITDA $3.4m compared to consensus $6.9m (1H25 EBITDA $4.6m). Total revenues include sales of Novosorb MTX $6.2m (1H25 $2.1m).

The revenue growth rate in the US market decreased to 26% vs 30% in FY25. Products sales revenues for the half expanded by a $14m vs pcp, nevertheless the growth rate was modestly disappointing. In ex US markets revenues of $16.5m increased vs pcp but were only in line with 2H25. These markets tend to be more lumpy compared to the US, hence there remains ample scope for 2H26 growth.

Why is it bullish?

However, Bell Potter believes there are reasons to be positive. One of those reasons is that institutional investors could soon return after a major red flag was resolved. It said:

The stock has underperformed the ASX200 over LTM by ~20% despite 26% top line growth. A contributing factor has been Board governance which was a red flag to numerous institutions. We believe these matters are now resolved.

Overall, the broker sees deep value on offer with this ASX 300 stock at under $1.00. Bell Potter explains:

Looking forward, top line growth should continue at strong double digit pace, translating into meaningful earnings growth and ROE. Novosorb has a significant and sustainable cost of advantage over peers in the market for dermal substitute products. These attributes also dovetail nicely with cost focussed markets outside of the United States. On a two to three year outlook, we believe the stock is deep value under $1. The forecast implies strong earnings leverage from the sales growth which is easily justified by Novosorb being among the cheapest cost of goods on the market.

Big potential returns

According to the note, the broker has retained its buy rating on Polynovo's shares with a trimmed price target of $1.80.

Based on its current share price of 90.5 cents, this implies potential upside of approximately 100% over the next 12 months. It concludes:

We maintain our Buy rating. PT is lowered to $1.80 following downgrades to short terms earnings forecast. Stock remains attractive based on a two to three year outlook for EPS growth.

The post Guess which ASX 300 share could rise ~100% appeared first on The Motley Fool Australia.