• Should I buy Pro Medicus shares after its big news?

    A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.

    Pro Medicus Ltd (ASX: PME) shares are in focus on Monday morning following another positive announcement.

    The medical imaging technology company has been building an impressive presence in the United States, and its latest news adds to that progress.

    But is Pro Medicus a share I would buy for the long term?

    Here’s what I think.

    Another contract win

    Pro Medicus announced this morning that it has secured a new seven-year contract with Billings Clinic in the United States, worth approximately $24 million.

    It is another encouraging addition to the company’s growing portfolio of healthcare customers.

    I like the consistency with which Pro Medicus has been winning these agreements.

    The company secured 10 new contracts worth at least $407 million during FY26, alongside six contract renewals.

    I think that demonstrates how well its Visage imaging platform is being received by major healthcare providers.

    And with these contracts often running for several years, each new agreement provides another source of revenue that can contribute to earnings over time.

    Today’s announcement is another step in that process.

    Why I like the long-term outlook

    One reason I am very positive on Pro Medicus is the growing importance of medical imaging.

    Scan volumes are increasing at a time when many countries are facing shortages of radiologists, putting pressure on hospitals to make better use of their existing specialists.

    Pro Medicus helps address this challenge through software that allows radiologists to access and analyse complex images more efficiently.

    I think that need for greater productivity could become an increasingly important driver of demand for its technology.

    There is also considerable room to expand. Pro Medicus estimates that it has captured around 11% of the US market, leaving the vast majority still available to pursue.

    Of course, winning new customers isn’t straightforward. Hospitals need reliable systems that integrate with their existing operations, and switching providers can be complicated.

    But I think that also works in Pro Medicus’ favour once its technology is installed. The company renewed all six customer contracts that came up for renewal in FY26, with higher transaction fees. For me, that is encouraging evidence of the value customers place on its software.

    More ways to grow

    Another reason I like Pro Medicus is that its opportunity extends beyond traditional radiology.

    The company has been expanding into cardiology, while developing new capabilities in digital pathology and AI-supported reporting.

    I think these developments could allow it to provide more services to existing customers while competing for a wider range of healthcare contracts.

    Foolish takeaway

    I think Pro Medicus remains one of the strongest long-term growth opportunities on the ASX.

    Today’s contract is another positive development, but I am much more interested in how much larger its business could become over the next decade.

    With plenty of room to expand in medical imaging and a growing range of products, I would be happy buying Pro Medicus shares with a long-term view.

    The post Should I buy Pro Medicus shares after its big news? appeared first on The Motley Fool Australia.

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

  • This ASX gold explorer could rise 180%: Broker

    Stacked gold bricks.

    Shares in Sinclair Gold Ltd (ASX: SGC) are up more than 100% over a 12-month period, but the analyst team at Barrenjoey believes they could go much higher.

    Barrenjoey has just initiated coverage on Sinclair and has an overweight recommendation and a very bullish share price target, which I’ll get to shortly.

    First, let’s look at some news from the company.

    More solid gold exploration results

    Sinclair has today reported new drilling results from its Mt Henry deposit in Western Australia, including an intersection of 0.4m at a grade of 122.7 grams per tonne.

    Sinclair Gold Chief Executive Jeff Sansom said regarding the results:

    The latest drilling continues to deliver exceptional grades and broad intersections well beyond the ~0.9 million ounce Mt Henry Resource footprint, highlighting significant growth potential. Results across northern, central and southern Mt Henry continue to expand the footprint of gold mineralisation. High-grade gold intersected 250m south of the current Mt Henry Resource boundary, beneath previous Birthday Gift drilling, has also identified an exciting target for follow-up drilling.

    Mr Sansom said the company had doubled the gold resource to 1.8 million ounces since February, “and these latest results demonstrate there is plenty more to come”.

    He added:

    With five rigs drilling, assays pending from 30 holes and much of the 16km mineralised corridor still untested, we are well positioned to deliver further Resource growth and new discoveries.

    Shares looking cheap, broker says

    Barrenjoey said in its research note that continued exploration success “could enable development of a relatively large (5 million tonne per annum), purpose-built processing plant capable of producing more than 150koz of gold per year”.

    Barrenjoey’s price target assumes first production from a mine at Mt Henry in FY32.

    They said:

    Our development scenario includes an open pit mining operation, feeding a 5Mtpa carbon-in leach process plant sourcing ore from the Selene, Mt Henry and other minor deposits. Our mining inventory is based on projected resource growth at the Selene and Mt Henry deposits and assumes exploration success within other parts of the project area. Utilising a 12% weighted average cost of capital and a US$4,000/oz gold price, our development scenario generates a build date net present value of $1,729m with life-of-mine average annual gold production of about 153koz.

    Barrenjoey has a price target of $3.05 on Sinclair shares compared to $1.07 currently.

    If achieved, this would constitute a 185% return. Sinclair Gold is valued at $200.5 million.

    The post This ASX gold explorer could rise 180%: Broker appeared first on The Motley Fool Australia.

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    Motley Fool contributor Cameron England 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.

  • 3 ASX shares I think could have a brilliant 2027

    Couple on their laptop in their home kitchen.

    With 2027 approaching, I’ve been looking at ASX shares that could have a particularly good year ahead.

    There are a few companies where I think business developments over the next 12 months could make a meaningful difference to their prospects.

    Here are three that stand out to me.

    Cochlear Ltd (ASX: COH)

    Cochlear is my first pick because I think 2027 could be an important year in its recovery.

    The hearing implant company has had a challenging period, with weaker profitability and a slower-than-expected rollout of its latest technology affecting results.

    But I still like its position in the global hearing implant market. Its Nucleus Nexa system represents an important step forward, offering new capabilities that can be updated as technology improves.

    Adoption has been encouraging, with the system accounting for more than 95% of implant sales across developed markets by June.

    I think the next opportunity comes from building on that product launch while improving the company’s operations. Cochlear has been reducing fixed costs and investing in programmes to help more adults with severe hearing loss access treatment. That could help expand the market over time, particularly given how many potential patients remain untreated.

    Management expects underlying profit to improve modestly in FY27, so I wouldn’t expect an immediate return to the growth rates investors once enjoyed.

    But if Cochlear can demonstrate stronger demand and improving margins, I think sentiment towards the shares could recover considerably.

    HUB24 Ltd (ASX: HUB)

    HUB24 is another ASX share I would be watching closely.

    Its investment platform helps financial advisers manage client portfolios, including investments held through superannuation and other structures.

    What I like is how HUB24 has been gaining market share. In FY26, its platform attracted $18.9 billion in net inflows, while total funds under administration reached $164.3 billion.

    That is a substantial amount of money flowing into a business that can benefit from having more assets on its platform.

    There is also an opportunity to improve profitability as it grows. HUB24 has already developed much of the technology and infrastructure required to service advisers and their clients. As more money flows onto the platform, I think earnings could grow faster than the underlying cost base.

    Competition remains strong, and financial market weakness can affect funds under administration. Nevertheless, I think HUB24 has the momentum to deliver another strong year in 2027.

    Lovisa Holdings Ltd (ASX: LOV)

    My final pick is Lovisa, which I think still has considerable international growth potential.

    The fashion jewellery retailer has been expanding rapidly, taking its relatively affordable products into more markets around the world.

    I like the flexibility of its store model. Lovisa can open relatively small stores in shopping centres, giving it opportunities to expand without requiring the same investment as larger-format retailers.

    In FY26, the company opened 160 new stores, taking its global network to 1,136 locations. That growth is already contributing to earnings, and I think there are plenty of markets where Lovisa could become more established.

    Early FY27 trading has also been encouraging, with sales growth supported by continued store expansion and improving comparable sales.

    Of course, fashion preferences can change, and rapid international expansion requires careful execution. But if this ASX share continues opening profitable stores while maintaining customer demand, I think 2027 could be another rewarding year.

    Foolish takeaway

    I think all three ASX shares have reasons to be optimistic about 2027.

    There is still work to do, particularly at Cochlear, but I like the longer-term opportunities across these businesses.

    I’d be happy buying them today with the expectation that the next year could bring some encouraging progress.

    The post 3 ASX shares I think could have a brilliant 2027 appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    * Returns as of 6 March 2025

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    Motley Fool contributor Grace Alvino has positions in Hub24 and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Lovisa. The Motley Fool Australia has recommended Cochlear, Hub24, and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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