It's been a brutal sell-off for Pro Medicus Ltd (ASX: PME).
The ASX tech star has plunged 46% year to date and is down a staggering 66% since peaking around $330 in July 2025. That's a painful drop for existing shareholders.
But for investors on the sidelines? This could be the kind of opportunity that doesn't come around often. Pro Medicus shares are certainly on my radar.
Image source: Getty Images
So why consider Pro Medicus shares now?
Start with the strengths.
Pro Medicus operates in a highly specialised niche, medical imaging software. Its flagship Visage platform is widely regarded as best-in-class. Hospitals and healthcare providers rely on it for faster, more accurate imaging, which improves patient outcomes.
That creates serious competitive advantages for Pro Medicus shares.
Once embedded, its software is incredibly sticky, with high switching costs and long-term contracts locking in recurring revenue. Add in its expanding footprint in the massive US healthcare market, and you've got a powerful growth engine.
This isn't just another tech company. It's a global healthcare enabler with premium margins and strong demand tailwinds.
But let's be clear: there are risks
Valuation has always been the big one for Pro Medicus shares.
Even after the sharp decline, Pro Medicus isn't exactly cheap on traditional metrics. The market has high expectations for growth, and any slowdown in contract wins or earnings momentum can hit the share price hard.
There's also broader healthcare sector pressure.
The recent sell-off hasn't been isolated to Pro Medicus, as my colleague Bronwyn Allen wrote earlier this month. Rather, it's part of a wider pullback in tech stocks, driven by rising interest rates and concerns around AI disrupting traditional software models.
That volatility isn't going away anytime soon.
What next for Pro Medicus shares?
Still, sentiment among analysts remains surprisingly strong.
According to TradingView data, 13 out of 14 market watchers rate Pro Medicus shares as a hold, buy, or strong buy. The average 12-month price target sits at $218.74, implying potential upside of around 84% from current levels.
And the bulls are even more optimistic. The most aggressive forecasts tip the stock could climb back to $300 — a potential gain of 152%.
That's a huge vote of confidence for a company that's just been heavily sold off.
Foolish Takeaway
Pro Medicus shares have been smashed, but the long-term story remains intact.
If the company continues to execute and demand for its technology keeps growing, today's price could look like a serious bargain in hindsight.
For investors willing to stomach the volatility, this could be a rare chance to buy a high-quality ASX growth stock at a steep discount.
