Heart Test Laboratories: AI-Driven Cardiology Platform Nearing Regulatory Milestones Supports Upside and Buy Rating

Ascendiant analyst Lucas Ward has maintained their bullish stance on HSCS stock, giving a Buy rating on December 17.

Lucas Ward has given his Buy rating due to a combination of factors that highlight both operational progress and substantial upside potential. He notes that Heart Test Laboratories slightly outperformed earnings expectations in Q2 FY26 while keeping operating expenses marginally below forecasts, indicating disciplined cost control despite a growing share count from recent financings. Ward also points to the launch and iterative enhancement of the MyoVista Insights cloud software platform, which is moving through a staged rollout with plans to add an FDA‑regulated AI algorithm for detecting reduced ejection fraction by 2026, positioning the company at the intersection of cardiology and artificial intelligence.
In addition, Ward emphasizes the recent 510(k) submission of the MyoVista wavECG hardware as a pivotal milestone after more than a decade of development, with anticipated FDA clearance in early 2026 expected to align with the software and algorithm roadmap. He underscores the very large addressable market, citing over 100 million annual ECG tests in the U.S. and the potential for AI‑enhanced ECG tools to improve early detection, reduce costly late-stage interventions, and drive meaningful revenue over time. While he acknowledges the need for additional, likely dilutive financing and execution risk, his net present value analysis supports raising the price target to $9.20, implying roughly triple the current share price. Taken together, Ward concludes that the risk/reward profile remains attractive enough to warrant maintaining a Buy rating on HSCS shares.

In another report released on December 17, Maxim Group also reiterated a Buy rating on the stock with a $12.00 price target.