While having recovered from their February one-year lows, Pro Medicus Ltd (ASX: PME) shares remain sharply lower over the past year.
On Monday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company were trading for $170.11apiece. That sees the share price down a sharp 43.2% over 12 months, well behind the 1.9% gains posted by the benchmark index over this same period.
A lot of the pressure on Pro Medicus shares has come amid wider concerns that AI can potentially replace the services that many global Software as a Service (SaaS) companies provide.
You may have heard this called the 'SaaSpocalypse'.
But following the big selldown, Medallion Financial Group's Stuart Bromley believes Pro Medicus is now trading at "an attractive entry point" (courtesy of The Bull).
Here's why.
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Should I buy Pro Medicus shares today?
"Pro Medicus is a global leader in medical imaging software, with its Visage platform increasingly adopted by major US hospital networks," Bromley said, citing the first reason he's bullish on the ASX 200 healthcare stock.
As for the second reason you might want to buy Pro Medicus shares today, he said:
Revenue of $261.7 million in full year 2026 rose 22.9 per cent on the prior corresponding period. Underlying net profit after tax of $144.7 million was up 24.1 per cent. Revenue and underlying net profit exceeded expectations, while the underlying earnings before interest and tax margin reached an exceptional 74.9 per cent.
Then there's the company's solid revenue pipeline.
"It signed 10 new contacts worth $407 million in full year 2026. It renewed six contracts on five-year terms to the value of $141 million," Bromley noted.
As for the fourth reason this ASX share is buy today, Bromley concluded, "Recent share price weakness provides an attractive entry point into a high-quality growth business."
What's the latest from the ASX 200 healthcare share?
Pro Medicus reported its FY 2026 results on 18 August.
Atop the strong financial results Bromley mentioned above, the company declared an all-time high final dividend of 37 cents per share, fully franked. It's a bit too late to grab that record passive income payout, though. The stock traded ex-dividend yesterday.
Commenting on the company's strong results on the day, Pro Medicus CEO Sam Hupert said:
We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis… Progress made in the cardiology market represents another important string to our bow. We see this trend continuing.
Pro Medicus shares closed up 11.9% on the day of the results release.
