{"id":221756,"date":"2025-10-18T03:19:06","date_gmt":"2025-10-18T03:19:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/221756\/"},"modified":"2025-10-18T03:19:06","modified_gmt":"2025-10-18T03:19:06","slug":"broker-lists-one-asx-healthcare-stock-as-a-buy-and-one-a-sell","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/221756\/","title":{"rendered":"Broker lists one ASX healthcare stock as a buy and one a sell"},"content":{"rendered":"<p><img width=\"1200\" height=\"675\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/10\/balance-1200x675.jpg\" class=\"attachment-full size-full wp-post-image\" alt=\"a hand of a man in a suit points a finger towards old fashioned brass scales that are not balanced in the foreground of the picture.\" decoding=\"async\" fetchpriority=\"high\"  \/><\/p>\n<p>Image source: Getty Images<\/p>\n<p>Bell Potter has released fresh analysis on two ASX stocks operating in healthcare and medical sectors. One is listed as a buy, with big upside, while the other has a sell recommendation.\u00a0<\/p>\n<p>Let&#8217;s see what triggered these ratings.\u00a0<\/p>\n<p> Biome Australia Ltd (<a class=\"tickerized-link\" href=\"https:\/\/www.fool.com.au\/tickers\/asx-bio\/\" rel=\"nofollow noopener\" target=\"_blank\">ASX: BIO<\/a>) <\/p>\n<p>This ASX stock is technically in the <a href=\"https:\/\/www.fool.com.au\/investing-education\/consumer-discretionary-shares\/\" rel=\"nofollow noopener\" target=\"_blank\">consumer staples<\/a> sector. However it licences, develops, and markets evidence-based, complementary medicines, including nutraceuticals vitamins and weight management products and live biotherapeutics.<\/p>\n<p>Bell Potter has a &#8220;buy&#8221; recommendation and price target of $1.00 (previously $0.95).\u00a0<\/p>\n<p>From this week&#8217;s closing price of $0.465. This indicates a big upside of 115.05%.\u00a0<\/p>\n<p>The broker said Biome Australia reported another <a href=\"https:\/\/www.fool.com.au\/tickers\/asx-bio\/announcements\/2025-10-17\/3a679026\/quarterly-activities-cashflow-report\/\" rel=\"nofollow noopener\" target=\"_blank\">record quarterly result<\/a>, with cash receipts up c.84% yoy to c.$7.1m and positive Net Operating Cash Flow of c.+$0.9m which is tracking well toward BPe of c.$3.0m for FY26.\u00a0<\/p>\n<p>The result reflected a strong rebound from 4Q25 which experienced a decline in both measures due to timing issues.<\/p>\n<p>BIO&#8217;s operating leverage is starting to come through and we would expect to see EBITDA improve further through FY26. If BIO maintains cost discipline, it should deliver a maiden free cash flow result this year.<\/p>\n<p>The broker believes maintaining quality in its growth performance should eventually see it recognised by the market resulting in a re-rate.<\/p>\n<p> AVITA Medical Inc (<a class=\"tickerized-link\" href=\"https:\/\/www.fool.com.au\/tickers\/asx-avh\/\" rel=\"nofollow noopener\" target=\"_blank\">ASX: AVH<\/a>) <\/p>\n<p>It&#8217;s a very different case for this ASX healthcare stock.<\/p>\n<p>AVH shares are already down 67.15% year to date and Bell Potter anticipates a further slide. <\/p>\n<p>The broker noted the <a href=\"https:\/\/ir.avitamedical.com\/news-releases\/news-release-details\/avita-medical-announces-ceo-transition\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">CEO recently departed <\/a> the company and soft revenue results are likely going to result in a substantial rationalisation program.\u00a0<\/p>\n<p>AVH cannot continue to support the current cost base in the absence of sales growth and its ongoing ~$10m\/qtr cash burn. <\/p>\n<p>The broker said over the last three years the company has required ongoing re-capitalisation which is now unsustainable, resulting in further painful shareholder dilution.<\/p>\n<p>The company issued a trading update on Friday, reporting September quarter revenues of approximately $17 million \u2013 down 12% compared to the prior corresponding period, 8% lower than the June quarter, and below the consensus estimate of $20 million.<\/p>\n<p>Based on this guidance, Bell Potter has a sell recommendation and price target of $1.20 on these ASX healthcare shares.\u00a0<\/p>\n<p>This indicates a downside of 12.4% from Friday&#8217;s closing price of $1.37. <\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images Bell Potter has released fresh analysis on two ASX stocks operating in healthcare and&hellip;\n","protected":false},"author":2,"featured_media":221757,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":{"0":"post-221756","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-au","9":"tag-australia","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/221756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=221756"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/221756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/221757"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=221756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=221756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=221756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}