ASX investors are often on the lookout for ASX healthcare stocks with market-beating upside.
With S&P/ASX 200 Index (ASX: XJO) healthcare stock CSL Ltd (ASX: CSL) recently facing criticism, investors may be looking for alternatives.
In its report, Emerging Leaders Reporting season wrap & best picks, Macquarie revealed its best stock picks following earnings season. Among them were 2 ASX healthcare stocks.
Let's find out which ones were named.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Neuren Pharmaceuticals was the first ASX healthcare stock named.
The company develops treatments for neurodevelopmental disorders that emerge in early childhood, including Rett syndrome. Its flagship product is DAYBLUE, the first and only FDA-approved drug for Rett syndrome in the US.
Macquarie initiated coverage of Neuren Pharmaceuticals on 18 June, and described it as a 'standout in the ASX biotech sector'.
In July, Macquarie named Neuren Pharmaceuticals as one of its top four ASX healthcare stocks to buy ahead of earnings season.
After reviewing its 1H25 result, the broker continues to regard it as a stand out pick in the sector.
Macquarie was pleased with the company's international expansion progress, noting:
We expect ROW expansion for DAYBUE is imminent, with Acadia anticipating EMA approval in 1Q26. This would trigger further royalty and milestone payments from Acadia, presenting upside to our earnings forecasts. Given the ROW expansion on track in Europe, we de-risk our ROW valuation from 50% to 75%.
Macquarie has an outperform rating and price target of $21.20 on Neuren Pharmaceuticals shares.
The ASX healthcare stock is up more than 1600% over 5 years, and 68% for the year to date.
Integral Diagnostics (ASX: IDX)
Integral Diagnostics was the second ASX healthcare stock Macquarie named.
The company provides medical and diagnostic imaging services across Australia and New Zealand, including X-rays, ultrasound, CT, and MRI scans.
Back in July, the broker also included Integral Diagnostics as one of its top ASX healthcare picks to buy ahead of earnings season. The broker cited "solid industry fundamentals" and "CAJ merger upside" in support of this recommendation.
Once again, Macquarie was impressed by its FY25 result.
When analysing its FY25 result, Macquarie commented:
We expect further margin expansion driven by cost synergies from the CAJ merger, with IDX increasing synergy expectations to A$14m (from previous A$10m). We expect scale benefits and increased teleradiology to further support margin expansion. This drives our forecasts of 140bps margin expansion in FY26E, with a further 50bps expected in FY27E.
Macquarie has an outperform rating and price target of $3.20 on Integral Diagnostics shares.
Over the past 5 years, Integral Diagnostics shares are down 29%. For the year to date, they are flat.
