Stock of the day: Nanosonics

(AI video summary)

This video was created on 7 July 2025 for IG audiences by ausbiz.

ASX code: NAN

Innovative product launch boosts market interest

Nanosonics has launched its Trophon 3 software for automated ultrasound disinfection, complemented by an update for current customers. Trophon 2 is approved in Europe, the United Kingdom (UK), Australia, and New Zealand, but awaits United States (US) Food and Drug Administration (FDA) approval.

RBC Capital Markets predicts increased sales and traceability revenues, setting a $5 target price. Shares rose 4% on this news, showing strong market enthusiasm.

Trophon 3 rollout

Analysts view the new release as a positive. With 35,000 Trophon units globally, 10,000 of which are over seven years old, the Trophon 3 rollout is a significant revenue opportunity.

Nanosonics also gains from sales of hydrogen peroxide cartridges used in each disinfection cycle. The company’s recent FDA approval for the Coris device opens new growth avenues and eases prior market concerns.

Investment outlook

Despite long-term potential, analysts caution that Nanosonics is a volatile investment. It is not cheap on a price-to-earnings (P/E) basis but shows promise in revenue and profitability. With an 'buy' recommendation and a $4.55 target price, analysts remain optimistic.

After a 35% share price increase this year, the leadership team, including former Cochlear executives, bolsters confidence. While welcoming the positive news, investors should stay mindful of volatility ahead.