ASX 200 healthcare shares are underperforming on Tuesday, with the S&P/ASX 200 Health Care Index (ASX: XHJ) up 0.7% compared to a 1.2% bump for the benchmark S&P/ASX 200 Index (ASX: XJO).
Here are three ASX 200 healthcare large-caps that have just been re-rated by market analysts.
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CSL Ltd (ASX: CSL)
The CSL share price is $178.46, up 0.8% today and down 35% over the past 12 months.
On The Bull this week, Damien Nguyen from Morgans has a buy rating on the healthcare sector's largest company.
Nguyen explains:
This biopharmaceutical giant offers a stronger risk/reward profile after a period of share price underperformance.
Plasma collections are rising, costs are normalising and earnings momentum is improving.
Recovery at CSL Behring, a blood products division, remains on track and the influenza vaccination division Seqirus continues to provide defensive earnings.
Nguyen points out that the current CSL share price "sits well below long term averages despite fundamental improvement".
This sets up an attractive long term capital growth story. Catalysts for a share price re-rating include an earnings recovery and margin expansion.
ResMed CDI (ASX: RMD)
The ResMed CDI share price is $36.89, down 0.5% on Tuesday and down 5.3% over the past year.
Remed is the third largest ASX 200 healthcare share on the market today.
Morgans upgraded ResMed shares to a buy rating after reviewing the company's 2Q FY26 update.
The broker said:
2Q beat across the board, with double-digit revenue and earnings growth, further gross margin expansion and solid cash generation.
Sleep and respiratory sales were strong in both regions, with above-market growth in the Americas and ROW returning to market growth, while SaaS beat expectations, but remained subdued by residential care headwinds.
Operating leverage improved again, with gross margin gains from manufacturing and logistics efficiencies, and FY26 guidance tightened to 62-63% (from 61-63%), reinforcing confidence in ongoing margin progression.
Morgans said the company's recent share price weakness is "unjustified given sound fundamentals".
The broker has a 12-month share price target of $47.73 on ResMed.
Pro Medicus Ltd (ASX: PME)
The Pro Medicus share price is $178.10, down 0.03% today and down 34% over the past 12 months.
Stuart Bromley from Medallion Financial Group has a hold rating on the ASX 200's fifth-largest company.
Bromley said:
The company retains best-in-class imaging software that should generate high margins and structural growth from a steady flow of new contract wins amid bigger and longer contract renewals with existing customers.
The significant share price retreat leaves PME as a hold, but also presents an opportunity to enter a top class business at an attractive price.
