Pro Medicus Ltd (ASX: PME) shares have shot the lights out over the past 12 months.
In afternoon trade today, shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company are up 0.1%, changing hands for $303.59 apiece.
That puts the Pro Medicus share price up a whopping 104.6% since this time last year. And this doesn't include the modest passive income on offer. At the current price, Pro Medicus stock trades on a fully franked dividend yield of 0.2%.
For some context, the ASX 200 has gained 10.5% over this same time, exclusive of the dividends many of those companies paid over the year.
Which brings us back to our headline question.
With the healthcare stock already having doubled in value in a year, does it still represent good value today?
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Pro Medicus shares: Buy, hold, or sell?
Sequoia Wealth Management's Peter Day recently ran his slide rule over the ASX 200 healthcare company (courtesy of The Bull).
"The company provides medical imaging software and services to hospitals and healthcare groups across the world," said Day, who has a sell recommendation on Pro Medicus shares.
"PME reported a full year 2025 result that was broadly in line with expectations," Day said.
"Revenue from ordinary activities of $213 million was up 31.9% on the prior corresponding period. Net profit of $115.2 million was up 39.2%," he added. "During the year, Pro Medicus announced $520 million in new contracts."
Despite those strong growth metrics, Day believes the ASX 200 stock may have gained too much too quickly.
"The shares have risen from $176.88 on April 7 to trade at $304.48 on August 21. We retain our sell rating as we believe the company's valuation is stretched," he said.
But following on the results, Sequoia did increase its target price for Pro Medicus shares by 33.3%.
"Our target price is $220, up from $165," Day said.
A word from the Pro Medicus CEO
Pro Medicus shares closed up 6.2% on 14 August, the day the company reported its FY 2025 results.
Commenting on those results, Pro Medicus CEO Sam Hupert said, "All our key financial metrics moved in the right direction."
Hupert added:
It was another very strong year of profitable growth, coupled with our biggest year of sales on record. We secured seven new contracts, valued at a minimum of AU$520 million, including our largest contract to date with Trinity Health.
Looking further ahead, Hupert noted, "Current forward contracted revenue for the next five years is AU$948 million, up from AU$624 million a year ago, and that doesn't include the UCHealth contract we announced in July."
