Are these 2 battered ASX healthcare shares too cheap to ignore?

Some ASX healthcare shares are going through a brutal period as competition, weaker demand and broader market pressures hammer investor confidence.

CSL Ltd (ASX: CSL) has dominated headlines recently for all the wrong reasons, but other ASX healthcare shares are also suffering heavy losses.

Shares in Cochlear Ltd (ASX: COH) are down roughly 63% over the past 12 months, while Telix Pharmaceuticals Ltd (ASX: TLX) has fallen around 44%.

So, have these ASX healthcare shares become too cheap to ignore?

Cochlear

Cochlear’s collapse accelerated after a disappointing trading update released on 22 April.

The ASX healthcare share plunged from around $168 to near $90 within days. That’s an extraordinary 46% wipeout for a blue-chip healthcare company.

Although the share price has since stabilised somewhat, the damage remains severe. The company, which controls roughly 50% of the global cochlear implant market, sharply downgraded FY26 underlying net profit guidance to between $290 million and $330 million. That was a major cut from its previous guidance range of $435 million to $460 million.

Management blamed weaker hearing implant demand across developed markets, slower referrals, postponed surgeries and disruptions in the Middle East that caused cancelled orders and delivery delays.

For a company long viewed as one of the ASX’s most reliable healthcare performers, the downgrade badly rattled investor confidence.

Still, the long-term investment case may not be broken. Cochlear remains the global leader in implantable hearing technology and continues reinvesting heavily into research and development, allocating around 13% of revenue toward innovation.

The company also benefits from ageing populations and a growing pool of patients with hearing loss worldwide. That suggests current weakness may prove more cyclical than structural.

Analyst opinion remains sharply divided. Jarden currently has a $169 price target on the ASX healthcare share, implying upside of almost 70%.

However, Macquarie recently slashed its target from $239 to $115, while Morgans maintains a hold rating and a $107.17 target.

Telix Pharmaceuticals

Telix shares have also experienced wild volatility. The ASX healthcare stock is down around 8% over the past month, remains up roughly 30% year to date, but has still slumped approximately 43% over 12 months.

Unlike many biotech companies, Telix already generates commercial revenue. Its lead product, Illuccix, is producing growing sales in the US market and provides a genuine commercial foundation for the business.

Telix operates in the rapidly expanding radiopharmaceuticals sector, developing imaging and therapeutic products for cancer treatment.

The company also has a growing development pipeline targeting kidney cancer, brain cancer and other oncology opportunities.

That helps explain the extreme share price swings. Positive announcements often trigger sharp rallies, while broader biotech weakness or slower news flow can spark aggressive pullbacks.

Despite the volatility, analysts remain overwhelmingly bullish on the ASX healthcare share. According to TradingView data, all 16 brokers covering Telix shares currently rate the ASX healthcare stock as either a buy or strong buy.

The average price target sits at $24.22, implying roughly 65% upside from current levels. The most bullish analyst target stands near $31. That points to a potential upside of approximately 110% if Telix continues delivering operational growth.

The post Are these 2 battered ASX healthcare shares too cheap to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and Telix Pharmaceuticals. The Motley Fool Australia has recommended CSL, Cochlear, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.