These pummeled ASX healthcare shares have both endured brutal share price declines over the past year.
CSL Ltd (ASX: CSL) shares started the week down 0.6% to $122.61. Despite rebounding 13% over the past month, they're still down around 51% over the past 12 months. Cochlear Ltd (ASX: COH) shares slipped 0.4% on Monday to $119.00, leaving them up 4% over the past month but down an even steeper 61% over the past year.
So, are these former market darlings now genuine buying opportunities or value traps?
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CSL: Waiting for earnings to recover
For decades, this $59 billion ASX healthcare share earned its reputation as one of the ASX's highest-quality companies, driven by global leadership in plasma therapies and a long history of consistent earnings growth.
That reputation has taken a hit. A series of earnings downgrades, leadership changes, and around US$5 billion of non-cash impairments tied largely to the CSL Vifor acquisition have weighed heavily on investor sentiment.
The latest disappointment came in May, when management guided FY26 revenue of approximately US$15.2 billion and NPAT of around US$3.1 billion, both below market expectations. The company also flagged another US$5 billion of non-cash impairments across FY26 and FY27.
Despite that, analysts aren't entirely bearish. According to TradingView data, 10 of the 18 brokers covering CSL now rate the stock as a hold, while the remaining eight have buy or strong buy recommendations. The average price target sits at $138.88, implying around 13% upside.
UBS remains among the bulls with a $158 target price, arguing much of the bad news surrounding Vifor is already reflected in the share price. The most optimistic analysts see gains of around 60% over the next year.
Cochlear: A temporary stumble?
April marked one of the toughest periods in Cochlear's history.
The hearing implant leader shocked investors after reporting weaker-than-expected demand across developed markets and disruption to shipments caused by conflict in the Middle East.
Management of the ASX healthcare share slashed FY26 underlying profit guidance from $435 million-$460 million to just $290 million-$330 million, triggering a one-day share price collapse of more than 40%.
Yet the company's competitive position remains largely intact. Cochlear still controls roughly half the global cochlear implant market, underpinned by decades of product innovation, clinical expertise, and strong relationships with surgeons worldwide.
Its long-term growth opportunity also remains compelling. More than six million people in developed markets are estimated to be eligible for cochlear implants, but only around 3% have received one.
Broker sentiment is cautious. Hold remains the most common TradingView recommendation, with an average target price of $127.14, implying roughly 7% upside.
However, six analysts still rate the shares as a buy or strong buy, with the highest target suggesting upside of around 43%. Two analysts recommend selling, with the lowest target price implying almost 16% downside.
Foolish takeaway
Both ASX healthcare shares remain global leaders with durable competitive advantages, but they are also working through company-specific challenges that have dented investor confidence.
For long-term investors, the sharp share price falls may present an opportunity. However, neither company has yet fully restored market confidence, meaning patience may be required before either regains its former market-leading status.
