Shareholders in fertility treatment specialist Monash IVF Ltd (ASX: MVF) have endured a rough ride in 2025.
Much of the trouble started in April when the company confirmed that an embryo of one patient was incorrectly transferred to another patient at its Brisbane clinic.
This unfortunate mix-up resulted in an Australian woman unknowingly giving birth to a stranger's baby.
As a result, Monash IVF shares fell by 36% on that day, sinking from $1.08 to $0.69 per share.
Things got even worse in early June with the ASX All Ords healthcare stock reporting another regrettable incident at one of its clinics.
Here, a patient's own embryo had been incorrectly transferred back to them.
Shares in the healthcare stock tanked again, falling by 27% from $0.745 to $0.545 per share.
The company's CEO resigned a few days later, sparking a modest rally in the company's shares.
Nevertheless, Monash IVF shares have now dropped by 52% since the start of the year, closing out last week at $0.61 apiece.
Not surprisingly, this represents an underperformance when compared to the broader market, with the All Ordinaries Index (ASX: XAO) rising by 2.6% over the same period.
But what comes next for this ASX All Ords healthcare stock after recently appointing a new CEO?
Renowned Australian investment house Macquarie Group Ltd (ASX: MQG) has weighed in with its views.
Macquarie's viewpoint
In essence, Macquarie believes that the sell-off stemming from the two incidents is now reflected in the company's share price.
In turn, it sees the current valuation for the ASX All Ords healthcare stock as "undemanding".
That said, the broker also noted some challenges for the business.
It pointed to difficulties in growing revenue in the domestic market, as well as operating margins being pressured by cost indexation and risk mitigation following the two incidents.
Macquarie now expects underlying net profit after tax (NPAT) for FY26 to clock in at the bottom end of the group's $20 million to $23 million guidance.
However, the broker believes that an improving macroeconomic climate from about FY27 could support better growth for the ASX All Ords healthcare stock.
It stated:
We see medium-term upside on an improving macro environment, increased genetic testing, underlying structural demands, demographic and social changes.
As such, Macquarie has placed an outperform rating on Macquarie IVF shares with a 12-month price target of $0.94 per share.
This forecast equates to 54% upside potential from Friday's closing price of $0.61 per share.
