It has been a tough year for two of the biggest ASX healthcare shares. But they started the week on a positive.
CSL Ltd (ASX: CSL) rose around 2% to $116.39 on Monday, while Pro Medicus Ltd (ASX: PME) gained 1.5% to $162.24, bouncing after a difficult week for both stocks.
The bigger picture, however, remains far less encouraging. CSL shares are down 33% year to date and 57% over the past 12 months. Pro Medicus has fallen 27% in 2026 and roughly 50% over the past year.
Both have underperformed the S&P/ASX 200 Health Care Index (ASX: XHJ), which itself slumped 43% in the past year. After hitting a nine-year low in early June, the sector has since rebounded around 15%.
Could these healthcare leaders continue that recovery?
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CSL: Is the worst already priced in?
Few large-cap ASX shares have endured a tougher 12 months than CSL, with more than $70 billion wiped from its market value over that period.
Earnings downgrades, a CEO transition, and around US$5 billion of non-cash impairments tied to the CSL Vifor acquisition have severely dented investor confidence.
Despite that, the underlying business remains one of the world's leading plasma therapy companies. Its global collection network, manufacturing expertise, and regulatory approvals have taken decades to build, creating barriers to entry that are extremely difficult for competitors to replicate.
Analysts still see meaningful upside. UBS recently reiterated its buy rating on the ASX healthcare share with a $158 price target, implying around 36% upside from current levels.
Morgans has a buy rating and a $147.59 price target on CSL shares, implying 26% upside. Consensus forecasts sit around $140.15, implying roughly 20% upside from current levels.
Pro Medicus: Premium business, premium valuation
Pro Medicus has also had a volatile year despite continuing to execute well operationally.
For the first half of FY26, revenue climbed 28.4% to $124.8 million, while underlying profit before tax increased 29.7% to $90.7 million. EBIT margins expanded again, rising from 72% to 73%.
Reported net profit surged more than 230%, although much of that reflected an unrealised gain on the company's investment in 4D Medical Ltd (ASX: 4DX).
More importantly, Pro Medicus finished the half with $221.8 million in cash and investments, no debt, and more than $280 million of new contract wins, including a major agreement with University of Colorado Health.
Its Visage imaging platform continues to win business from hospitals around the world, supported by high switching costs and a strong reputation for performance.
Morgans currently has an accumulate rating and a $230 target price on the ASX healthcare share, while Citi is even more bullish with a buy rating and a $240 target. That points to a potential 48% gain over the next 12 months.
Foolish takeaway
Both ASX healthcare shares have suffered heavy share price declines, but for very different reasons.
CSL is trying to rebuild investor confidence after a string of setbacks, while Pro Medicus continues delivering strong operational results despite a weaker share price.
Neither recovery is guaranteed. However, with durable competitive advantages and brokers forecasting meaningful upside, both ASX healthcare shares could be worth watching as the sector continues its rebound.
