Fund Manager Summary on EchoIQ Ltd (ASX:EIQ)
EchoIQ Ltd (ASX:EIQ) has garnered positive attention following FDA approval of its technology and an integration agreement with Beth Israel Deaconess Medical Centre in October 2024, indicating strong operational momentum. Despite this, recent fund manager commentary reflects caution, as Cadence Capital reduced its position for profit while participating in subsequent capital raises. The company currently trades at a high PE multiple of 232x FY25 earnings, indicating potentially limited upside given market pressures. Furthermore, the declining share price trajectory suggests increased risk, prompting some managers to adopt short positions. Investors should consider the balance of EchoIQ's promising technological developments against elevated valuations and potential headwinds in its US and Australian market expansions.
Commentary From The Managers
There are 4 insights from 2 fund managers regarding their investment in EchoIQ Ltd (ASX:EIQ) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Wilson Asset Management
28 Feb 2026
$0.63
Summary
- Wilson Asset Management believes EchoIQ is a market-leading AI-driven medical technology company and continues to hold, with significant near-term catalysts including a pending FDA clearance and strategic partnership interest.
- EchoIQ's flagship EchoSolv platform uses proprietary AI to scan echocardiogram reports and improve detection of structural heart disease, starting with severe aortic stenosis and now expanding into heart failure.
- In December, the company formally lodged its FDA submission for EchoSolv HF following a standout clinical validation study with the Mayo Clinic, with a decision expected in March or April — a clearance that would significantly expand the US addressable market.
- Heart failure is the leading cause of US rehospitalisation and accounts for 17% of total US healthcare spend, representing a large and underserved addressable market for the platform.
- Industry sources confirm EchoIQ's technology is market-leading, positioning it for rapid US market penetration.
- Strategic partnership interest from multiple parties represents a near-term catalyst, alongside potential improvement in reimbursement rates for aortic stenosis detection.
Cadence Capital
30 June 2025
$0.22
Summary
- EchoIQ performed strongly after receiving FDA approval in October 2024.
- Integration agreement established with Beth Israel Deaconess Medical Centre, Boston USA.
- Cadence Capital recently reduced its position for a profit but participated in the most recent capital raise.
- Guzman Y Gomez share price has declined since reaching a high of $45 in February 2025.
- The company is trading at a PE multiple of 232x FY25 earnings.
- High expectations for US and Australia expansion.
- Cadence Capital took a short position when the share price turned and has added to the position as the trend continued down.
Cadence Capital
30 Nov 2024
$0.26
Summary
- Cadence Capital updates its investment thesis on EchoIQ Ltd.
- EchoIQ is a medical technology company utilizing artificial intelligence to identify heart failure.
- Recent positive results from clinical studies reinforce confidence in their technology.
- In November, EchoIQ signed an agreement with Beth Israel Deaconess Medical Centre (BIDMC) in Boston.
- The partnership aims to integrate EchoIQ’s technology for patient identification with aortic stenosis.
- BIDMC conducts about 30,000 echocardiograms annually, providing valuable data on the efficacy of EchoIQ's solutions.
- Cadence Capital continues to hold EchoIQ as it believes in the growth potential stemming from these developments.
Cadence Capital
30 Sept 2024
$0.23
Summary
- Cadence Capital continues to monitor EchoIQ Ltd, a medical technology firm utilizing artificial intelligence for heart failure detection.
- Recent results from two clinical studies revealed an 86% detection rate of heart failure cases without human review.
- With human review, the detection rate improved to 97%, significantly higher than the current 46% rate in standard practices.
- EchoIQ completed an equity raise to support its commercialization efforts, in which Cadence Capital participated.
- The company’s share price saw a 45% increase in September and has continued to perform well into October.
- Recently, EchoIQ’s technology received FDA approval for marketing and use in the USA by healthcare professionals.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in EchoIQ Ltd (ASX:EIQ)?
Fund managers including Cadence Capital and Wilson Asset Management have invested in EchoIQ Ltd (ASX:EIQ).
Why do fund managers invest in EchoIQ Ltd?
Fund managers invest in EchoIQ Ltd primarily due to its recent FDA approval and integration agreement with Beth Israel Deaconess Medical Centre, which enhance its growth prospects. The approval signals potential for increased adoption of its technology within the healthcare market. Despite some profit-taking, fund managers remain involved through capital raises, indicating confidence in future developments. The company operates in a sector with high demand for innovative solutions, reflecting a favorable risk/reward profile for investors.
What happened to EchoIQ Ltd (ASX:EIQ)?
There have been no recent updates from fund managers regarding EchoIQ Ltd although fund managers including Cadence Capital have previously commented.
What is the short interest in EchoIQ Ltd (ASX:EIQ)?
The short interest in EchoIQ Ltd (ASX:EIQ) is 0.01% which makes it the 521st most shorted stock on the ASX. Of the 650.3M shares that EchoIQ Ltd has on issue, 80.1K have been sold short.
What does EchoIQ Ltd (ASX:EIQ) do?
EchoIQ Ltd. engages in the development and application of artificial intelligence for the cardiac diagnostics sector, as well as the supply of software used by the health fund and insurance sector. It operates through the Houston WeHave Software and Echo IQ segments. The Houston WeHave Software segment offers products and services across defence and other sectors. The Echo IQ segment focuses on developing artificial intelligence software that aids in predicting Aortic Stenosis heart condition. The company was founded by Richard Charles Anstey on March 31, 2010 and is headquartered in Sydney, Australia.