OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Bell Potter rates ARX as Buy

Bell Potter retains its Buy rating on Aroa Biosurgery and $1.09 target after positive peer-reviewed results from the Symphony randomised controlled trial in diabetic foot ulcers.

Symphony plus standard of care lifted complete wound closure at 12 weeks to 45.6% from 23.6%, while reducing estimated mean time to closure by 7.8 days.

The broker believes these results strengthen Symphony's case for outpatient adoption as reimbursement reforms increase focus on clinical evidence and treatment economics.

The Myriad soft-tissue repair platform, used in complex wounds and surgical reconstruction, is seen as the key near-term growth driver.

Symphony provides additional upside against an estimated US$1bn addressable market, the broker suggests.

Unchanged Buy rating and $1.09 target.

UBS rates DDR as Neutral

Dicker Data has announced a binding agreement to acquire Sector Group for NZ$138m ($111.8m), which will be funded by existing debt facilities, UBS notes.

Sector is founder-led and is a leading APAC distributor of point-of-sale, barcode, enterprise mobile, cybersecurity and physical security, the analyst details.

The acquisition is considered incrementally positive for Dicker Data, albeit relatively small, adding a new geography and being bought at an appealing valuation of 6.1x or 4.6x post-synergies.

The broker points to most of the existing revenues being in the A&NZ, with the SE Asian scaled growth as yet unproven.

Neutral rating retained with a $15.40 target price unchanged.

UBS rates TLX as Buy

UBS is very upbeat on the potential success of Telix Pharmaceuticals' BiPass study which has scope to grow PSMA-PET into pre-biopsy settings which would reduce the need for biopsies, deeming them as unnecessary.

The analyst reckons the market is underestimating both the commercial upside scale and the probability of success, and this would be a first to market in what is described as a large new diagnostic indication. A "transformative" opportunity no less.

The broker forecasts a 10% FY26-FY35 CAGR for PSMA-PET franchise compared to 6% forecast for consensus, emphasising key opinion leader engagement as another positive.

The readout is slated for 1Q2027. UBS reiterates its Buy rating and upgrades the target price to $26 from $22. EPS forecasts are unchanged.