Here's how Morgans rates the 3 biggest ASX 200 healthcare shares

Top broker Morgans has revealed its verdict on the 3 biggest ASX 200 healthcare shares on the market today.

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Key points

  • ASX 200 healthcare shares are up 0.4% on Friday, outperforming the benchmark index, as Morgans shares insights on CSL, Sigma Healthcare, and Pro Medicus shares. 
  • Morgans maintains a buy rating on CSL shares, but notes concerns over lower earnings guidance and Seqirus division demerger delays, reducing its price target to $249.51.
  • Sigma Healthcare is rated as accumulate, benefiting from a positive outlook post-Chemist Warehouse merger with a target of $3.39, while Pro Medicus, upgraded to hold, faces valuation concerns with a slight price target upgrade to $290.

ASX 200 healthcare shares are outperforming on Friday, with the S&P/ASX 200 Health Care Index (ASX: XHJ) up 0.4% compared to the S&P/ASX 200 Index (ASX: XJO), which is up 0.25%.

In new notes, top broker Morgans has revealed its verdict on the three biggest ASX 200 healthcare shares on the market today.

Let's take a look.

CSL Ltd (ASX: CSL)

The CSL share price is $179.85 on Friday, up 0.16% today and down 36% in the year to date.

Morgans has a buy rating on the market's largest ASX 200 healthcare share.

However, it's concerned by an update from CSL flagging lower expected earnings and a delay in the demerger of the Seqirus division.

Morgans said:

Despite the majority of the business "tracking to plan", FY26 cc guidance had been downgraded (2-3% at revenue and NPATA mid-points), mainly reflecting continued declines in US influenza vaccination rates, although Chinese government cost containment affecting albumin demand was also flagged.

Although it remains challenging to know when US influenza vaccination rates will stabilise, we believe the risk of a permanently lower base is being over-priced, with Seqirus and Vifor marked down, with even Behring trading below peers and well under its long-term average, which we see as unjustified.

The broker lowered its FY26-28 net profit forecasts by up to 14.3%, and reduced its 12-month share price target from $293.83 to $249.51.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $3.12, up 0.48% today and up 16% in the year to date.

Morgans has an accumulate rating on Sigma Healthcare shares.

Sigma Healthcare became the market's second-biggest ASX 200 healthcare share after its merger with Chemist Warehouse.

Morgans said Sigma Healthcare management provided an upbeat outlook at the annual general meeting last week.

SIG provided positive commentary at its recent AGM around continued domestic and international store expansion, solid like-for-like sales and reconfirmation of synergy benefits.

At this stage we remain comfortable with our FY26 forecasts, which show sales and EBIT growth of 11.4% and 23.6% respectively.

We forecast EBIT growth to continue (~18%) for FY27/28.

The broker has a 12-month share price target of $3.39 on this ASX 200 healthcare share.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price $263.32, down 0.008% on Friday and up 4.4% in the year to date.

Morgans has just upgraded Pro Medicus shares from a trim rating to a hold rating.

The broker is still concerned about valuation after the Pro Medicus share price doubled in value in FY25.

Morgans said:

PME continues to trade on elevated multiples, even at our target price with FY26F PE of ~200x, EV/EBITDA ~130x, and PEG ratio of 5x.

While these metrics reflect the company's exceptional quality and growth profile, they also imply limited valuation support in the absence of new large contract announcements which is an opaque and often protracted process.

At current levels, the risk-reward profile justifies a more balanced stance.

The broker raised its 12-month share price target from $285 to $290.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL and Pro Medicus. 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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