ASX healthcare shares have recovered some lost ground throughout May. The S&P/ASX 200 Health Care Index (ASX: XHJ) has risen 0.10% today and has gained 3.01% over the past month. Some healthcare shares are expected to jump even higher.
The All Ordinaries Index (ASX: XAO) opened 0.29% higher on Thursday.
In a recent note to investors, Macquarie Group Ltd (ASX: MQG) has updated its position and target price on three ASX All Ords stocks in the healthcare sector. It expects some share prices could increase as much as 30-50%.
Integral Diagnostics Ltd (ASX: IDX)
Integral Diagnostics provides diagnostic imaging services to general practitioners, medical specialists, and allied professionals. It operates under three core brands: Lake Imaging, South Coast Radiology, and Global Diagnostics.
Company shares crashed 30% in February this year when the business recorded a statutory loss of $0.4 million in its half-year results. Investors were strongly disappointed, and many offloaded their shares.
Integral Diagnostics attributed the loss to higher-than-expected clinical staff cost inflation, particularly in two remote regional areas.
Since its crash, the share price has slowly gained ground and is trading 15.02% higher today at $2.45 per share.
But Macquarie thinks there is room for a much stronger recovery. In its note, the broker revealed its outperform rating at a $3.20 target price on the stock. This indicates a potential 30.61% upside from today's price.
Although Macquarie also notes that key downsides to its thesis relate to weaker-than-expected volume growth and/or operating cost growth ahead of expectations. It also points to less-than-expected cost synergies from the potential merger as another downside.
Australian Clinical Labs Ltd (ASX: ACL)
Australian Clinical Labs is a leading private provider of pathology services in Australia.
The company's share price suffered a similar fate to Integral Diagnostics when it plummeted 16.21% in late February. The drop followed a cybersecurity incident that exposed sensitive patient data.
At the same time, the company's market value also declined as investors responded to the company skipping full-year guidance and potentially not paying a final dividend, despite strong first-half profits, the AFR reported.
Today, the shares are trading at $2.935 a piece, down 1.84% for the day. The share price is still up 33.41% for the year.
Macquarie is neutral on the stock. In its investor note, it has assigned a $3.15 target price, indicating a potential 7.32% upside.
"The key downside to our thesis and Neutral recommendation is slower-than-expected recovery in base pathology volumes, with upside being additional synergies providing cost out and a faster recovery in base pathology volume," Macquaire said.
Healius Ltd (ASX: HLS)
Healius is an Australian healthcare company that provides pathology, diagnostic imaging, and related services to consumers and healthcare professionals. It has a large network of laboratories, collection centres, and imaging centres across Australia.
The Healius share price remained steady throughout the first quarter of the year, thanks to strong H1 2025 results.
But its share price has spiraled in May. Shares are trading at $0.9125 today, down 42.96% since 7 May.
There has been no news out of the healthcare company, but it appears that investors are concerned about the state of Australia's healthcare sector.
Healthscope went into administration this week.
Macquarie is neutral on the stock, but expects a strong recovery as investors regain confidence. The broker has placed a $1.40 target price on shares, up from $1.38 previously, which would represent a potential 53.42% increase from today's trading price.
"The key risks to our earnings forecasts, target price and rating primarily relate to variation in base business activity (pathology, diagnostic imaging), operating expense growth relative to our expectations and the final outcomes associated with the divestment of Lumus Imaging," it said.
