It has been well documented the headwinds that have hit ASX healthcare shares in recent times. 

Rising interest rates, tighter capital markets, and a more challenging funding environment have weighed heavily on the sector. This has particularly impacted smaller, early-stage companies that remain reliant on external capital to fund growth. 

Yet, beneath the broader weakness, there are signs that the outlook is beginning to improve. Valuations have reset significantly, and a number of quality businesses now offer compelling long-term growth opportunities.

Two that fit this criteria are Mesoblast Ltd (ASX: MSB) and Sigma Healthcare Ltd (ASX: SIG). 

The team at Bell Potter have provided fresh guidance on both ASX healthcare stocks, tipping a big 12 months. 

Here’s what the broker had to say. 

Sigma Healthcare shares looking cheap 

Sigma Healthcare was formed in February 2025 following a merger of the legacy Sigma Healthcare with Chemist Warehouse Group. 

The merger integrates the distribution power of the legacy Sigma business with one of Australia’s most recognised retail pharmacy franchisors. 

In yesterday’s report, Bell Potter said the Chemist Warehouse merger is delivering scale, synergies, and operating leverage. Additionally, the pharmacy business is benefiting from structural growth. 

The broker saw full-year results as broadly in line with expectations, with revenue up 15.5% and normalised EPS rising 22% to 6.3 cents. 

Growth was driven by strong pharmacy sales. Net debt and leverage also improved materially, although most of the leverage reduction came from higher EBITDA rather than lower debt. Overall, Bell Potter sees a business with strong growth and improving efficiency that is now trading at its cheapest valuation since the merger.

Based on this guidance, Bell Potter has a buy recommendation on this ASX healthcare stock and a $3 price target. 

From current levels, this indicates 14% upside. 

Massive upside for Mesoblast 

This ASX healthcare stock has been relatively flat over the last year. 

It is a biotechnology company that develops and commercialises allogeneic cellular medicines to treat complex diseases resistant to conventional standards of care.

The company released annual results yesterday.

Bell Potter said the ASX healthcare company’s results were broadly in line with expectations.

The outlook remains very positive, with Ryoncil expected to deliver continued double-digit growth, and major catalysts ahead from Rexlemestrocel in heart failure and chronic lower back pain. 

The broker has issued a buy recommendation and set a $4.45 price target for this ASX healthcare stock. 

From yesterday’s closing price, this indicates over 84% upside. 

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

The post Why now is the time to buy low on these ASX healthcare shares with up to 84% upside appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Where I’d invest $10,000 in ASX shares in September
• Sigma Healthcare FY26 earnings: Record profit as Chemist Warehouse merger delivers growth
• Mesoblast earnings: Strong revenue growth and operational milestones in FY26
• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus

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.

The Weebit Nano Ltd (ASX: WBT) share price is in focus today after the company delivered record revenue of $15.3 million for FY26, up 246% from the prior year, and announced new agreements with major semiconductor players such as Texas Instruments.

What did Weebit Nano report?

• Revenue rose to $15.3 million, up from $4.4 million in FY25.
• Statutory loss after tax increased to $54.9 million (FY25: $38.4 million).
• No dividends declared for the period.
• Net tangible assets per share improved to 63.95 cents (FY25: 43.04 cents).
• Cash balance at 30 June 2026 was $168.3 million, significantly up on the previous year.

What else do investors need to know?

Weebit Nano strengthened its commercial position in FY26 by licensing its ReRAM (Resistive RAM) technology to Texas Instruments, its largest ever customer, and expanded agreements with other key customers. The company also achieved industry-standard technology qualification at foundry partner DB HiTek and demonstrated working chips in collaboration with onsemi.

During the year, the company broadened its leadership team and built up its balance sheet, raising $102 million through capital initiatives. Weebit also established a US subsidiary to support its growing customer base and adoption in North America, and secured a role in Korea’s national In-Memory Compute program, signalling growing recognition for its technology in AI and embedded computing markets.

What did Weebit Nano management say?

Weebit Nano CEO Coby Hanoch said:

Weebit Nano solidified our first mover advantage in embedded ReRAM, delivering significant commercial and technical progress that move us closer to mass production and sets us further apart from competitors… I’m incredibly proud of the world-class team Weebit Nano has built.

What’s next for Weebit Nano?

Looking ahead, Weebit Nano expects continued revenue growth, with at least $7.1 million anticipated in 1H FY27. Management is focusing on supporting customers as they move toward mass production and entering the royalty revenue phase. The group will continue expanding its technology into advanced nodes and invest further in AI-related R&D, especially as demand for efficient memory solutions rises in dynamic markets like AI and automotive.

The company notes ongoing strategic efforts to secure new licensing deals, with an expectation of multiple new agreements over FY27. Weebit Nano’s strong cash position is set to support R&D, commercialisation and new product development.

Weebit Nano share price snapshot

Over the past 12 months, Weebit Nano shares have risen 37%, outpacing the All Ordinaries Index (ASX: XAO).

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The post Weebit Nano FY26: Record revenue, new customer wins appeared first on The Motley Fool Australia.

More reading

• Why Capstone Copper, Weebit Nano, and Fortescue shares are turning heads on Friday
• Weebit Nano lifts revenue guidance on new deals and chip tape-outs
• 9 ASX 300 shares that tripled in FY26

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Westgold Resources Ltd (ASX: WGX) share price was in focus today after the company reported FY26 revenue soaring 79% to a record $2,441 million, and underlying NPAT of $480 million—up 452% year on year.

What did Westgold Resources report?

• Revenue: $2,441 million, up 79% from FY25
• Underlying NPAT: $480 million, up 452% from FY25
• Underlying EBITDA: $1,104 million at a 45% margin
• Operating cash flow: $964 million, up 170%
• Free cash flow: $602 million, up 11,940% from FY25
• Fully franked dividend: 10 cents per share
• Closing Treasury balance: $939 million

What else do investors need to know?

Westgold produced a record 387,354 ounces of gold during FY26, with strong contributions from its Murchison and Southern Goldfields operations. The company invested approximately $362 million in mine development, exploration, and infrastructure to boost operational flexibility and future production.

The company remained 100% debt free and fully unhedged, while also completing asset divestments, including the Valiant Gold Ltd demerger. Westgold returned $122 million to shareholders via dividends and buybacks, and has approved a further $50 million buy-back for FY27.

What did Westgold Resources management say?

Westgold Resources’ CEO, Wayne Bramwell, commented:

FY26 was a landmark year for Westgold and delivered a strong outcome for shareholders. Record gold production, improved operating consistency and a favourable gold price drove record earnings, cash flow and treasury growth, strengthening our capacity to invest, grow and return capital… Our strategy and value proposition going forward is clear. We have a business of growing scale, balance sheet strength, asset quality and the team to create value while maintaining a clear focus on shareholder returns.

What’s next for Westgold Resources?

Westgold’s board has adopted a new Shareholder Capital Return Policy, supporting ongoing dividends and share buy-backs. Looking ahead, the company will continue to focus on disciplined capital allocation, investing in its largest and most productive assets to boost production and cash flow.

The company will release further updates on its growth strategy and FY27 guidance in the coming weeks, outlining plans for continued production growth and shareholder value creation.

Westgold Resources share price snapshot

The Westgold Resources share price has significantly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of 92%.

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The post Westgold Resources posts record FY26 profit, boosts dividend and returns appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Westgold Resources launches $100m Meekatharra expansion plan to boost output
• Westgold Resources lifts Ore Reserves by 41% in 2026 update

Motley Fool contributor James Mickleboro 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.