Pro Medicus Ltd (ASX: PME) shares are tumbling today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed Monday trading for $117.70. During the Monday lunch hour, shares are changing hands for $112.46 apiece, down 4.5%.
For some context, the ASX 200 is down 1.4% at this same time.
Unfortunately for longer-term stockholders, today's underperformance has been more the rule than the exception over the past eight months.
Indeed, Pro Medicus shares are now down a painful 66.0% since notching an all-time closing high of $330.48 on 17 July last year.
That comes despite the company posting some strong financial growth metrics in H1 FY 2026, as investor fears over potentially rising competition from AI models has intensified this year.
But after this sharp sell down, two top analysts believe the ASX 200 healthcare stock is well-placed to rebound (courtesy of The Bull).
Image source: Getty Images
Should you buy Pro Medicus shares today?
"Pro Medicus develops advanced medical imaging software used by major hospitals and radiology groups globally," said Catapult Wealth's Blake Halligan
Citing the first reason he has a buy recommendation on Pro Medicus shares, Halligan said, "The company reported a strong first half result in fiscal year 2026, with revenue up 28.4% to $124.8 million and underlying profit before tax rising 29.7% to $90.7 million."
Then there's the company's strong balance sheet and recent new contract wins.
According to Halligan:
In March, PME secured two important contract renewals worth a minimum of $40 million, both at higher transaction fees, signalling strengthening pricing power. With an underlying earnings before interest and tax margin at 73% and cash of $222 million, PME remains financially robust.
And the third reason you might want to buy the ASX 200 healthcare share today is the company's positive growth prospects in the massive US healthcare market.
"Growing US market share supports a positive long term growth outlook, making PME an attractive portfolio addition," Halligan concluded.
Also tipping the ASX 200 healthcare share as a buy
MPC Markets' Mark Gardner also has a bullish outlook on the beaten down Pro Medicus shares.
"The company provides medical imaging software and services to hospitals and healthcare groups across the world," said Gardner. "Its software has quietly become the dominant choice across some of the largest hospital networks in the United States."
And rather than expressing concern over the potential impact of AI, Gardner believes it will help the company's growth prospects.
"The product is faster, more scalable and modern than what its competitors offer. Artificial intelligence is built in, so it complements the business," he said.
Summing up his buy recommendation on the ASX 200 stock, Gardner concluded:
The share price plunge has been driven by broad technology sentiment as opposed to issues with the business. Earnings are still growing and the company still wins major new hospital contracts.
In our view, the market has handed investors an appealing entry point into one of the best software businesses on the ASX. We retain our buy recommendation.
