This broker just upgraded this ASX healthcare stock and is predicting 30% upside

Vitrafy Life Sciences Ltd (ASX: VFY) is an ASX healthcare stock that was heavily sold off yesterday. 

It is an Australian innovator in cryopreservation solutions. 

It develops a range of proprietary smart cryopreservation hardware devices along with Lifechain – an integrated, cloud-based software platform, to provide a complete, vertically integrated cryopreservation solution to retain the quality of cryopreserved biomaterials. 

This ASX healthcare stock lost more than 5% in yesterday’s trading after the company released its quarterly activities report.

However a new report from broker Bell Potter suggests it could be an undervalued ASX healthcare stock with plenty of upside. 

2Q26 Result

In yesterday’s report, the company released financial information. 

It reported improved operating cash flow in 2Q26 with a net outflow of approximately $2.9m.

This was down from roughly $3.7m in 1Q26.

Cash costs increased 47% YoY to $5.0m.

The improvement in cash flows reflected the receipt of $1.8m in grant funding as part of a $4.8m Industry Growth Program grant to commercialise cryopreservation technology.

The $10m the Company had on term deposit rolled over during the quarter.

Across the balance of FY26, average quarterly cash costs are expected to increase around 10-15% in the current half, coinciding with the Company’s investment in the ramp up of key regulatory testing work for medical device registration, expansion of the commercial team in the US and investment in an initial fleet of devices to meet anticipated demand.

Investors largely rotated out of the stock based on this report, as this ASX healthcare stock fell 5.66% on Thursday.

Opportunity knocks for this ASX healthcare stock

After yesterday’s stock price fall, new analysis from Bell Potter indicates the stock could be significantly undervalued.

The broker said the strategic collaboration with global animal reproduction leader IMV Technologies (over 500m inseminations annually) opens a potential $100m+ managed services opportunity at full penetration across IMV’s ~1,200 collection centres. 

The 12-month co-development agreement is expected to deliver ~$0.93m in revenue through CY26 and positions VFY for a longer-term partnership while accelerating animal market progress and allowing greater focus on the North American human health market.

The maiden commercial agreement with IMV appears quite prospective and marks the beginning of commercial visibility into VFY’s future.

The broker has a speculative buy rating on this ASX healthcare stock. 

It also upgraded its price target to $2.28 (previously $2.10). 

From yesterday’s closing price, this indicates an upside of 30.29%. 

The post This broker just upgraded this ASX healthcare stock and is predicting 30% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.