ASX 200 healthcare stock Pro Medicus Ltd (ASX: PME) made headlines yesterday after tumbling 24% following the release of its latest earnings result.
Investors were running for the exit despite some positive results.
For the six months ended 31 December, Pro Medicus reported:
- Revenue up 28.4% to $124.8 million
- Underlying profit before tax up 29.7% to a record $90.7 million
- Underlying EBIT margin expanding to 72.6%
- Interim dividend of 32 cents per share, fully franked.
On the surface these look like solid results, but investors weren't convinced.
The ASX healthcare stock has now fallen 42% since the start of 2026.
Image source: Getty Images
Brokers response
Following the brutal sell-off, Bell Potter updated its guidance on the ASX 200 healthcare stock.
The broker said the outlook statements continue to support expectations of robust growth in the years ahead.
Despite these positives, the stock has been "priced for perfection" and the 5% miss at the top line was sufficient to trigger a brutal share price reaction.
The earnings miss could not have been more poorly timed in an environment of hyper-sensitivity to the perceived threat to long term earnings posed by the evolution of advanced AI tools.
In addition the company disclosed that it had been unsuccessful on more than one contract during the period, on the basis of price – not what the market needed on the back of an earnings miss.
Where to from here?
In yesterday's report, Bell Potter reinforced it remains confident on ongoing outlook for revenue and earnings growth.
However, it significantly reduced its share price target.
The broker retained its buy recommendation on the basis the current price is an attractive entry point.
The broker now has a price target of $240.00 (previously $320.00) on this ASX 200 healthcare stock.
This indicates an upside of 86% from yesterday's closing price of $129.00.
Another ASX healthcare stock gets an update
Pro Medicus wasn't the only healthcare stock that endured a tough day of trading yesterday.
Oneview Healthcare PLC (ASX: ONE) shares dropped more than 7% on Thursday after releasing earnings results.
The company provides patient engagement and clinical workflow technology solutions to healthcare facilities. It serves hospitals and healthcare systems, academic medical centers, and pediatric hospitals.
Following yesterday's results, Bell Potter improved its forecast operating losses (R. EBITDA) over the FY26-FY28 period by 20%/22%/48%.
The broker retained its speculative buy recommendation and $0.50 price target.
This indicates an upside of roughly 66%.
Although the thematics appear to be improving, we remain cautious about the long-term trajectory and therefore moderated our long-term growth assumptions to leave our TP unchanged at $0.50/sh.
