Is this ASX healthcare stock a buy low candidate after falling 35%?

Trajan Group Holdings Ltd (ASX: TRJ) is a small-cap ASX healthcare stock that has fallen 34.95% in 2025. 

Trajan Group Holdings is a developer and manufacturer of analytical and life sciences products and devices, seeking to enrich human well-being through scientific measurement. 

Its current portfolio of products comprises products, devices, and solutions that are used in the analysis of biological, food, and environmental samples.

Broker Bell Potter released fresh analysis on the company yesterday, which included a buy recommendation and optimistic price target. 

Here is what the broker had to say. 

Improving sentiment, headwinds easing

The report said that the headwinds from Academic/Government segments in both US & China, appear to be easing. 

The broker also said tariff mitigation should be completed by FY26 through a combination of pricing and cost out programmes. 

Instrument sales still face challenges from funding pressures, however consumables business appears to be holding up. 

Bell Potter also noted this ASX healthcare stock is beginning to utilise AI technology. 

According to the report, AI is beginning to creep into management commentary with a range of AI agents being developed to speed up lead conversion and software development.

As sentiment and operating performance amongst TRJ's US peers improves, so should TRJ's financial results.

The broker did note that market acceptance depends on the company's ability to improve testing products and to introduce new products successfully, while proving its offerings are superior to competing technologies.

AGM results 

Trajan Group also recently held its 2025 AGM.

The company reported: 

• Group revenue of $166.5M, up 7.4% from pcp. 
• Group EBITDA $15.5M, up 26.2%. 
• Operating NPATA rose 33.3%. 

Overall, the company maintained revenue guidance. 

Based on the AGM results, Bell Potter said the key catalyst for the company is demonstrating improvement in EBITDA margins. 

In 1Q26 revenue is slightly ahead of pcp but segment performance is patchy, with Components & Consumables (C&C) revenue up a solid c.10%, but Capital Equipment (CE) down c.20% with an expected recovery through the year.

Price target upside

In yesterday's report, Bell Potter maintained its buy recommendation and target price of $1.25 for this ASX healthcare stock. 

Based on yesterday's closing price of $0.67, this indicates an upside of approximately 86%. 

Guidance remains in the LSD% range but sentiment is improving, through industry tailwinds (or headwinds easing) including efficiencies, volume leverage, strength in pharma, chemicals and CDMOs, as well as China stimulus.

The post Is this ASX healthcare stock a buy low candidate after falling 35%? appeared first on The Motley Fool Australia.

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.

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