With potential upside of more than 300%, is this ASX biotech the best buy on the ASX right now?

ASX biotech stock EBR Systems Inc (ASX: EBR) is attracting serious attention from brokers this week. 

Fresh price targets from experts indicates this could be a rare opportunity for investors. 

The company develops implantable systems for wireless tissue stimulation. Its WiCS Wireless Cardiac Stimulation technology helps address the significant opportunity to eliminate cardiac pacing leads.

Brokers have been dropping fresh guidance on the ASX biotech stock after it secured a purchasing agreement with HCA Healthcare, one of the largest healthcare systems in the US, representing an important commercial milestone. 

What did the company report?

On Wednesday, the company released an announcement to the ASX that it has secured a purchasing agreement with HCA Healthcare, marking a significant step in the commercial rollout of its WiSE CRT System.

HCA Healthcare is one of the largest healthcare networks in the U.S., with 190 hospitals and approximately 2,500 ambulatory sites of care across 19 states.

John McCutcheon, EBR Systems’ President & Chief Executive Officer said:

Securing a purchasing agreement with HCA Healthcare is an important commercial milestone for EBR. Establishing a purchasing pathway across one of the largest healthcare networks in the U.S. supports broader commercial access for the WiSE System and builds on the momentum of our U.S. rollout. It is also a signal that WiSE reimbursement supports adoption across larger networks.

EBR is currently active in two HCA sites, St David’s Medical Center in Austin, Texas and Medical City in Fort Worth, Texas. 

According to the release, this agreement will streamline the procurement and contracting pathways for the WiSE System across HCA Healthcare hospitals. 

EBR sales reps will be able to engage directly with physicians and administrators at HCA sites to support the continued adoption of the WiSE System. 

Morgans retains its buy recommendation

Following the announcement, the team at Morgans released updated guidance on the ASX biotech stock. 

We believe the agreement not only should support more efficient procurement and contracting processes, building on US commercial momentum following strong 1Q implant growth, but also reinforce management’s recent commentary around increasing engagement with large IDNs and GPOs, which we view as critical to scaling adoption over time.

We continue to view EBR favourably given growing physician enthusiasm, expanding reimbursement support, increasing repeat utilisation and emerging evidence of institutional validation.

The broker retained its buy recommendation and $2.47 price target. 

From yesterday’s closing price of just over 59 cents, this indicates an upside potential of more than 300%. 

Morgans isn’t the only broker tipping exponential growth. 

As James Mickleboro reported yesterday, Bell Potter has also tipped 250% upside for this ASX biotech stock. 

The post With potential upside of more than 300%, is this ASX biotech the best buy on the ASX right now? 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.