It hasn't been a great year for investors in CSL Ltd (ASX: CSL) shares.
The biotech giant — long considered a market darling — has seen its shares slide roughly 20% in 2026 so far. A softer-than-expected half-year result rattled confidence, and growing competition hasn't helped sentiment.
But while CSL works through its challenges, investors might want to look elsewhere in the healthcare space.
One name stands out: Pro Medicus Ltd (ASX: PME). It hasn't been immune to selling pressure either, with shares down around 46% this year. Yet brokers are tipping explosive upside from here.
Here's why.
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A high-quality healthcare disruptor
Pro Medicus is the third-largest healthcare stock on the ASX, sitting behind ResMed (ASX: RMD) and CSL shares.
The company develops advanced imaging software used by hospitals and radiology providers globally. Its flagship Visage platform is widely regarded as one of the most sophisticated radiology imaging systems on the market.
That reputation is translating into real wins.
Just two weeks ago, Pro Medicus secured two major five-year contracts with a combined minimum value of $40 million. These kinds of long-term deals provide strong revenue visibility and reinforce its position in the US healthcare market.
Strengths that stand out
One of Pro Medicus' biggest advantages is its business model. This is a highly scalable software company, not a capital-heavy operator. As a result, it delivers extremely strong margins.
It has also locked in long-term contracts with large hospital networks, particularly in the US. That creates sticky, recurring revenue streams — something investors love.
Then there's the balance sheet. Pro Medicus has historically carried little to no debt while continuing to grow earnings at an impressive rate. That financial strength gives it flexibility and resilience.
Risks to watch
Of course, no growth stock comes without risks.
There's contract concentration risk. A handful of large deals can drive performance, so any delays or losses could impact growth expectations.
And while expansion in the US has been a major tailwind, it also exposes the company to competitive and regulatory pressures in a complex market.
What next for Pro Medicus and CSL shares?
Despite the risks, brokers are clearly bullish.
Bell Potter has a buy rating and a $240.00 price target on Pro Medicus shares. That suggests around 100% upside over the next 12 months.
Meanwhile, Morgans is even more optimistic. It has a buy rating and a $275.00 price target. Based on the current share price of $121.91, that implies potential upside of more than 125%.
CSL shares still have upside, but it's more modest. The average 12-month price target sits at $209.50, pointing to roughly 50% gains. Even the more cautious forecasts, around $175, suggest a 26% rise.
Foolish takeaway
CSL remains a global healthcare powerhouse. But right now, its growth story looks a little more uncertain.
Pro Medicus, on the other hand, is a smaller, faster-growing player with strong momentum in a niche market.
If brokers are right, this under-pressure healthcare stock could be gearing up for a powerful rebound — and potentially even a doubling in value (or more).
