S&P/ASX 200 Index (ASX: XJO) healthcare shares are down 0.3% on Tuesday.
Healthcare has been the worst performer of the 11 ASX 200 market sectors over the past year, falling 40%.
The healthcare sector faces many challenges, including currency headwinds, US tariffs for larger companies, and higher labour costs.
Crumbling consumer confidence is leading to delayed medical decisions, and we are likely to see further interest rate rises in Australia.
Investors are also wary of the potential impact of artificial intelligence (AI), especially for software-as-a-service (SaaS) providers.
ASX 200 biotechs are also grappling with uncertainty with the US Food and Drug Administration (FDA) under the Trump administration.
Recently, the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a six-year low, and many sector giants are trading around 52-week lows.
Some brokers say this downward sector spiral is an opportunity.
Here are four ASX healthcare shares that have attracted new buy ratings this week.
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Pro Medicus Ltd (ASX: PME)
The Pro Medicus share price is $137.58, down 0.8% today and down 46% over six months.
Pro Medicus designs medical imaging software and services for healthcare providers around the world.
This ASX 200 healthcare share hit a record $336 per share last July following an amazing two-year run.
The Pro Medicus share price has since deteriorated significantly.
Morgan Stanley maintains a buy rating with a 12-month target of $200, implying 45% upside ahead.
Mesoblast Ltd (ASX: MSB)
The Mesoblast share price is $2.22, up 0.7% today and down 20% in the year to date (YTD).
Mesoblast specialises in allogeneic cellular medicines for severe inflammatory diseases.
Bell Potter has reaffirmed its speculative buy rating on this ASX 200 healthcare share.
The broker has a $4.45 price target on Mesoblast shares, suggesting a doubling in value over the next year.
Bell Potter said:
At the very least, today's cash flow result should provide shareholders with confidence that MSB can generate earnings and cash flow positive operations from sales of Ryoncil alone.
The company's future is looking brighter than ever with revenues expanding and new product approvals now well advanced for heart failure and chronic lower back pain.
Resmed CDI (ASX: RMD)
This ASX 200 healthcare share is trading 1.8% higher at $29.49 on Tuesday.
The Resmed share price has fallen 18.5% YTD.
Morgans reiterated its buy rating on Resmed shares after the sleep device developer released its 3Q FY26 report.
The broker said Resmed delivered double-digit revenue and earnings growth, further margin expansion, and strong cash flow generation.
Morgans commented:
Sleep and respiratory demand remains robust, with continued mask strength and ROW re-acceleration, while SaaS remains stable but subdued.
Notably, GM expansion continues, underpinned via manufacturing, procurement and logistics efficiencies.
And while macro uncertainties remain and investors seemingly focus on variability in US device growth while pondering if the Noctrix acquisition is merely a 'plug' to a slowing core, we view these concerns as myopic and manageable.
Morgans has a $41.72 price target on Resmed shares, implying 42% growth ahead.
Cochlear Ltd (ASX: COH)
Cochlear shares are $100.50, up 0.2% today and down 62% YTD.
The Cochlear share price hit an 11-year low of $88.74 after the hearing implant maker downgraded its earnings guidance last month.
Cochlear cited many challenges, including capacity constraints at hospitals, falling consumer confidence, cancellations in the Middle East, industrial action by healthcare professionals in Italy and Spain, and China lowering its reimbursements to patients.
However, Canaccord Genuity sees an opportunity, and reiterated its buy rating on this ASX 200 healthcare share last week.
But the broker more than halved its 12-month price target from $295 to $120.
