Guess which ASX tech stock could rise 40% in 2026

If you are looking for exposure to the tech sector and have a high tolerance for risk, then it could be worth checking out 4DMedical Ltd (ASX: 4DX) shares.

That's the recommendation of analysts at Bell Potter, which believe this high-flying ASX tech stock could rise strongly from current levels.

What is the broker saying?

Bell Potter was pleased to see the lung imaging technology provider announce a significant expansion of its distribution agreement with Koninklijke Philips NV (NYSE: PHG) this week.

This for its FDA-cleared, non-contrast computed tomography (CT) ventilation and perfusion imaging solution, CT:VQ.

It highlights that Philips will expand its commitment via a dedicated sales force, incentivised to chase new business for CT:VQ. This is being funded by Philips and is in addition to a US$10 million minimum sales commitment.

Commenting on the deal, Bell Potter said:

The deal represents a significant win for 4DX at a time when numerous developers of AI based medical diagnostics have withered on the vine. 4D Medical has never promoted its products as self-learning, rather they are cloud deployed algorithms for diagnosis of various pulmonary defects where the data input is the images from conventional CT. The 4DX technology requires no additional hardware and fits in seamlessly with radiology workflows.

The revenue commitment by Philips relates only to the CTVQ product, nevertheless, the securing of a minimum contract value by a tier one distribution partner is a rarity and represents a further validation of the 4DX CTVQ technology and the intent by Philips to embrace the technology for the long term.

Time to buy this ASX tech stock

In response to the news, Bell Potter has reaffirmed its speculative buy rating with an improved price target of $2.50 (from $2.25).

Based on its current share price of $1.79, this implies potential upside of approximately 40% for investors over the next 12 months.

Commenting on its buy recommendation, the broker concludes:

We retain our Buy (Speculative) rating. Price target is raised to $2.50 from $2.25. Short terms catalysts include the first major new client signing under the Philips banner now anticipated in 1H26. We expect further wins from the 4D Medical sales team being mainly expansion of existing license arrangement to include fee for service revenues for CTVQ.

Overall, this could make this exciting ASX tech stock one to consider if it fits your risk profile.

The post Guess which ASX tech stock could rise 40% in 2026 appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro 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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