ASX Healthcare Stock: Should You Buy After Recent Drop? (2026)

Is a 138% Upside Potential Enough to Overlook Yesterday's 5% Drop in This ASX Healthcare Stock?

Imagine a rollercoaster ride, but instead of thrills, it's your investment portfolio. That's the reality for shareholders of Saluda Medical Inc (ASX: SLD), a recently listed ASX healthcare company specializing in spinal cord stimulation (SCS) therapy. Since its December debut, Saluda's stock has been on a wild ride, soaring 20% in its first week only to plummet over 26% from its peak, including a 5% drop yesterday, leaving it hovering near its all-time low. But here's where it gets controversial: is this dip a buying opportunity or a warning sign?

Saluda, a single-product company focused on its innovative 'Evoke System' for chronic pain management, released its first financial update since its IPO yesterday. The report revealed a 17% revenue increase in the first half of 2026 compared to the previous year, driven by strong US sales growth of 17% year-over-year and 19% quarter-over-quarter. This surge is attributed to a growing number of physicians adopting the Evoke System. While international sales contribute less than the US market, they also saw a healthy 26% increase.

And this is the part most people miss: Bell Potter, a brokerage firm, upgraded Saluda's FY26 revenue guidance by 4% to $85 million, citing strong commercial execution and deepening penetration into the US physician base. They maintain a 'speculative buy' recommendation, albeit with a slightly reduced price target of $2.70, implying a potential upside of 138.94% from yesterday's closing price of $1.13.

However, the volatility inherent in small-cap stocks like Saluda cannot be ignored. The company's single-product reliance and the competitive landscape in the SCS market add another layer of risk.

So, is Saluda a risky gamble or a hidden gem? The answer depends on your risk tolerance and belief in the company's ability to sustain its growth trajectory. While the potential upside is enticing, the recent price drop and inherent risks warrant careful consideration.

What do you think? Is Saluda Medical a buy at its current price? Share your thoughts in the comments below. Remember, this is not personalized financial advice, and past performance is not indicative of future results. Always conduct your own research before making any investment decisions.

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