{"id":61640,"date":"2025-08-12T04:19:10","date_gmt":"2025-08-12T04:19:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/61640\/"},"modified":"2025-08-12T04:19:10","modified_gmt":"2025-08-12T04:19:10","slug":"expert-says-sell-these-2-asx-200-healthcare-giants-now","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/61640\/","title":{"rendered":"Expert says sell these 2 ASX 200 healthcare giants now"},"content":{"rendered":"

\"Medical<\/p>\n

Image source: Getty Images<\/p>\n

ASX 200 healthcare shares<\/a> are in the green on Tuesday with the S&P\/ASX 200 Health Care Index (ASX: XHJ) lifting 0.17%.<\/p>\n

An undeniable darling of the sector is Pro Medicus Ltd (ASX: PME<\/a>) shares. <\/p>\n

Pro Medicus provides unique medical imaging software and services to hospitals and healthcare organisations worldwide. <\/p>\n

Pro Medicus is now the third-largest ASX 200 healthcare share after staggering price growth over the past three years. <\/p>\n

It has overtaken the hearing aid blue-chip stock Cochlear Ltd (ASX: COH<\/a>), which is now the fifth-largest healthcare stock. <\/p>\n

Jed Richards from Shaw and Partners has a sell rating on both healthcare shares. <\/p>\n

He explains why on The Bull<\/a> this week.<\/p>\n

ASX 200 healthcare shares to sell now: expert Strong start for Pro Medicus shares in FY26\u2026 but broker says sell <\/p>\n

Pro Medicus was one of the 5 strongest healthcare stocks in FY25<\/a>, lifting 99%. <\/p>\n

Since 1 July, the stock has lifted a further 6.73%. <\/p>\n

And this is why Richards says investors should sell it.<\/p>\n

Richards said: <\/p>\n

Pro Medicus trades at extremely high valuation multiples and has no dividend yield<\/a>. <\/p>\n

While its medical imaging software is innovative, the stock price reflects aggressive growth assumptions. <\/p>\n

Richards said any slowdown in earnings or margin pressure could trigger a sharp correction in the share’s valuation. <\/p>\n

Compared to peers, PME appears overvalued and lacks income support. Investors may want to consider locking in gains and re-allocating funds to more reasonably priced healthcare or technology names with better risk-reward profiles.<\/p>\n

Pro Medicus shares are currently trading at $304.12, down 0.21% for the day so far.<\/p>\n

Pro Medicus will reveal its latest results this Thursday, 14 August.<\/p>\n

Cochlear faces market competition <\/p>\n

Richards has a sell rating on this ASX 200 healthcare share because he’s concerned about market competition. <\/p>\n

The analyst said: <\/p>\n

Cochlear faces increasing global competition as hearing technology rapidly evolves. <\/p>\n

While it remains a leader in implantable devices, rivals are closing the innovation gap, and its dominance may erode. <\/p>\n

Richards notes that Cochlear shares have risen from $249.78 on 9 April to $309.65 today (down 0.61% for the day). <\/p>\n

The stock’s high price\/earnings ratio<\/a> suggests growth is already priced in, leaving limited upside. <\/p>\n

Any slowdown in sales or margin compression could impact the company’s valuation. <\/p>\n

Investors may want to consider trimming exposure before investing in more attractively valued healthcare or technology opportunities.<\/p>\n

The Cochlear share price is down 8.8% over the past year. <\/p>\n

Cochlear will release its next round of half-year results this Friday, 15 August. <\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images ASX 200 healthcare shares are in the green on Tuesday with the S&P\/ASX 200…\n","protected":false},"author":2,"featured_media":41788,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500,313],"class_list":["post-61640","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-au","tag-australia","tag-health","tag-healthcare","tag-trending"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/61640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=61640"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/61640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/41788"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=61640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=61640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=61640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}