A report from Canaccord Genuity has given a mixed outlook on some of the largest ASX healthcare shares including ResMed Inc (ASX: RMD), Cochlear Ltd (ASX: COH) and CSL Ltd (ASX: CSL) shares.
The healthcare sector is coming off a tough 2025.
The S&P/ASX 200 Health Care (ASX: XHJ) Index dropped almost 25% last year.
It was largely dragged down by a 39% fall from CSL shares.
The Reporting Season Preview report from Canaccord Genuity/Wilsons Advisory said with the sector still heavily out of favour and valuations broadly discounted relative to history, there is potential for meaningful share price swings within the sector.
Greg Burke, Equity Strategist, said the financial advisory firm expects another mixed set of results this reporting season.
He said ResMed, CSL and Cochlear are the key large-cap stocks to watch.
ResMed shares
ResMed shares remain down more than 8% over the last 12 months.
However the healthcare stock did deliver a strong quarterly update last week.
The recent report from Canaccord Genuity said ResMed remains a high-conviction exposure.
It said the stock is in an upgrade cycle that is expected to continue over the medium term.
This is supported by healthy top-line growth from robust CPAP demand and ongoing gross margin expansion.
Consensus estimates remain conservative, particularly on gross margins, leaving significant scope for further upgrades.
Cochlear shares
Cochlear shares are currently trading almost 17% below their 52-week high.
The report from Canaccord Genuity said Cochlear has delivered three successive downgrades, driven by its services segment, which is reason for caution heading into its result.
While management has already guided to a soft 1H result due to a 2H earnings skew, we see risks that this skew is not fully reflected in consensus or well understood by the market. That said, despite near-term downgrade risk, the medium-term growth outlook – supported by the Nexa system rollout – remains attractive.
The report said any post-result weakness could present an attractive buying opportunity in the stock.
It is set to release earnings results on 13 February.
CSL shares
CSL shares are trading almost 33% below their 52-week high.
According to Canaccord Genuity, CSL was arguably the highest profile underperformer of 2025.
The company has now issued four successive downgrades. Bulls argue the stock is excessively cheap, trading at a forward P/E of 17.5x – its lowest in 10 years – while still offering reasonable growth, with a 3-year consensus EPS CAGR of 9%. Bears counter that CSL faces structural headwinds and, as it remains in a downgrade cycle, consensus figures remain at risk.
CSL is set to release earnings results on 11 February.
