S&P/ASX 200 Health Care Index (ASX: XHJ) shares have tumbled 27% over six months as the sector faces multiple challenges.
Blackwattle Large Cap Quality Fund portfolio managers Joe Koh and Elan Miller cite unfavourable currency changes, tariffs, and higher labour and cost pressures for Australian healthcare companies.
These challenges, in part, have led to 8 of the 10 largest healthcare shares on the market trading at or close to multi-year lows.
This week on The Bull, analysts reveal buy ratings on three ASX 200 healthcare shares, and why they see value in them today.
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Pro Medicus Ltd (ASX: PME)
The Pro Medicus share price is $124.94, up 0.8% on Thursday.
This ASX 200 healthcare share has dropped 60% over six months, and hit a two-year low of $107.75 in late February.
Blake Halligan from Catapult Wealth has a buy recommendation on Pro Medicus shares.
Halligan explains:
With an underlying earnings before interest and tax margin at 73 per cent and cash of $222 million, PME remains financially robust.
Growing US market share supports a positive long term growth outlook, making PME an attractive portfolio addition.
Telix Pharmaceuticals Ltd (ASX: TLX)
The Telix Pharmaceuticals share price is $13.29, up 0.7% today.
This ASX 200 healthcare share has fallen by 14% over six months and by 48% over the past year.
The stock hit a two-year low of $8.26 in February.
Mark Gardner from MPC Markets says Telix Pharmaceuticals shares are a buy, commenting:
The company recently re-submitted its drug application to the US Food and Drug Administration (FDA) for Pixclara, an imaging agent for a particularly aggressive form of brain cancer.
The FDA has given it priority status, and Telix has gone through a formal meeting to address every question raised in its previous application. In our view, a re-submission isn’t a setback, but the last step before approval.
We believe the market isn’t pricing in the benefits of a potentially successful FDA outcome.
Ramsay Health Care Ltd (ASX: RHC)
The Ramsay Health Care share price is $39.47, up 1.1% today.
This ASX 200 healthcare share has bucked the trend, rising 25% over six months.
The stock hit an 18-month high of $44.73 in early March.
Remo Greco from Sanlam Private Wealth gives Ramsay Health Care shares a buy rating.
Greco said:
The private hospital operator posted a better than expected first half year result for fiscal year 2026.
RHC is spinning off its European business, which we believe paints a brighter outlook.
The fully franked interim dividend of 42.5 cents was up 6.3 per cent and potentially points to a stronger final dividend for the full year.