CSL Ltd (ASX: CSL) shares have dropped another 5.81% in lunchtime trade on Thursday as the biotech's sharp sell-off continues for another day.
At the time of writing, the shares are trading at an eight-year low of $153.95 a piece and are now 39.93% lower over the year.
CSL shares have crashed by more than 14% this week alone after the ASX biotech company released a soft half-year result yesterday, following a shock CEO exit on Tuesday.
Analysts have been pretty positive on CSL shares for some time, with many tipping an extraordinary comeback this year. But I think the company's latest update shows we may be further away from a recovery than the market realised.
Here's another ASX healthcare stock I'd look at instead. And I think its shares could outperform CSL over the next 12 months.
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The ASX share that could beat CSL
ResMed Inc (ASX: RMD) develops, manufactures, and distributes medical devices and provides cloud-based software to diagnose and treat a range of sleep and respiratory disorders.
At the time of writing, its shares are down 2.27% for the day at $35.955 and 4.25% lower over the year. There has been no news out of the company this week to explain the drop, so it's likely a flurry of investors selling up.
Late last month, ResMed posted a strong quarterly result for the period ended 31 December. The company announced an 11% year-on-year increase in revenue and an 18% increase in income from operations.
ResMed also revealed that for the second half of FY26, it plans to increase investment in digital health solutions and innovation, aiming to expand global access to home-based care. The company also said it plans to scale up its AI-enabled technology, following recent FDA clearance for its Smart Comfort device.
I think there is an incredible amount of potential ahead for the stock this year. And analysts seem to be bullish about its outlook, too.
Here's what analysts expect from ResMed shares this year
Data shows that 21 out of 30 analysts have a buy or strong buy rating on ResMed shares. The maximum target price is $53.82 a piece, which implies a potential 50.35% upside at the time of writing.
Morgans has a buy rating on ResMed shares and said it thinks that recent share price weakness is unjustified given the company's sound fundamentals.
Ord Minnett is also incredibly positive about the company's outlook this year. The broker has a buy rating on the shares and said it has a "strongly positive view on ResMed" following its latest results.
