CSL, Resmed, Cochlear shares crash to multi-year low: Buy, sell or hold?

Here's what the experts are tipping for the shares over the next 12 months.

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The S&P/ASX 200 Index (ASX: XJO) has slumped again in early morning trade on Thursday, continuing on a run of seven consecutive days of losses.

The latest weakness has been driven, in part, by declines in major ASX healthcare shares. Cochlear Ltd (ASX: COH), CSL Ltd (ASX: CSL), and Resmed CDI (ASX: RMD) shares have all tumbled to multi-year lows this week.

Cochlear shares are 1.21% lower to $88.88 at the time of writing on Thursday morning. The latest share price represents the lowest trading price since November 2015. For the year to date, Cochlear shares are now down 67%, and they're 68% lower for the year.

It's a similar story for CSL shares. The beaten-down biotech stock is down 0.88% today to a 10-year low of $124.76 a piece. For the year to date, CSL shares are now down 27%, and they're 50% lower for the year.

Resmed shares have tumbled another 3.82% in early-morning trade, to a two-year low of $29.19 a piece. The latest update means the medical equipment company's shares are now 19% lower for the year to date, and they're 20% lower than this time 12 months ago. 

Three happy office workers cheer as they read about good financial news on a laptop.

Image source: Getty Images

Why are these ASX healthcare shares slumping?

ASX healthcare shares are facing significant headwinds right now. These include disappointing earnings results and structural headwinds such as a weaker US dollar, higher US tariffs, and increased labour costs.

Concerns about overinflated share prices also caused concern that some ASX shares were overvalued and due for a sharp correction.

These headwinds have seen investors increasingly turn away from healthcare shares this year and instead reposition themselves towards ASX energy stocks, resources, and defensive assets. 

On top of a sector-wide sentiment shift, the three companies have also faced their own business-based headwinds.

Cochlear posted a softer-than-expected half-year result in February, triggering a share sell-off. The shares crashed again last week after the company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand.

Meanwhile, CSL has experienced a notable slowdown in earnings growth, loss of investor confidence, and operational challenges. More recently, CSL has faced headwinds such as lower vaccine demand, a surprise restructure, and even a shock CEO exit.

There hasn't been any price-sensitive news out of Resmed to explain the company's share price declines this year. It's likely that the healthcare stock has been swept up in a general sector-wide sell-off. 

Is the latest dip a buying opportunity for investors? Or is there more to come? Here's what the analysts think.

What to expect from Cochlear, CSL, and Resmed shares next

It looks like now is a great buying opportunity to get into the ASX 200 shares for cheap. 

Analysts are mostly bullish across the board.

TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on Cochlear shares, with an average target price of $130.70 a piece. That time plies a 47% upside at the time of writing.

Analysts are even more positive about the potential outlook for CSL shares. Out of 18 analysts, 12 have a buy or strong buy rating on the stock, and they tip an average 60% upside to $199.11 a piece.

Resmed shares are also expected to fly around 42% to an average target price of $41.67 over the next 12 months. Out of 31 analyst ratings, 22 have a buy or strong buy rating on Resmed shares.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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