Pro Medicus Ltd (ASX: PME) shares are climbing higher on Thursday.
At the time of writing, the shares are up slightly by about 1% and are changing hands at $162.82 each. Today's increase means the shares are now nearly 23% higher so far in June.
The rebound is good news for investors after a huge sell-off over the past year. Pro Medicus shares are still 51% below their all-time peak recorded in July last year and are also down 27% year to date.
The company was just one of many ASX healthcare shares that were caught up in a severe sector-wide downturn in early 2026. The healthcare sector came under significant pressure due to macroeconomic factors, a weaker US dollar, rising inflation, higher cost of living, and regulatory uncertainty.
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Why are Pro Medicus shares rebounding this month?
Pro Medicus shares have rebounded strongly since the health imaging technology company announced three new contract wins and renewals in June alone.
Earlier this month, Pro Medicus revealed that its wholly owned US subsidiary, Visage Imaging, had signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN) and a new A$16 million, seven-year contract with TidalHealth.
Later the same week, the company confirmed that Visage Imaging has signed a five-year A$16 million contract renewal, including the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, with The Ohio State University Wexner Medical Center (OSUWMC).
This latest renewal brings the total renewals for the financial year to A$141 million. The total of new contracts comes to around A$280 million for FY26.
Is it time to buy?
According to experts, it's time to get greedy while Pro Medicus shares are cheap.
Market Index data shows the majority of brokers have a buy rating on the stock, and they tip a 20% upside to an average target price of $193.92.
The data is similar on TradingView. Out of 15 analysts, 12 have a buy or strong buy rating, and two have a hold rating on Pro Medicus shares. The average $189.47 target price implies a 17% upside at the time of writing. The maximum $245 target price implies the shares could climb another 51% over the next 12 months.
Macquarie is one broker with a buy rating on the ASX healthcare company, with a $221 target. The broker said recent contract wins have supported market sentiment following the tech sell-off due to AI fears. The team said they think the business size, variety, and increasing upsell to cardiology support the high target price.
The analyst team at Morgans is also positive about Pro Medicus shares. The broker said the company is executing well and is in a structurally strong competitive position. Morgans has a buy rating and $210 target price on the shares.
