CSL Ltd (ASX: CSL) shares have surged 32% over the past month after stronger-than-expected plasma product sales. But with the rally potentially priced in, analysts see better value elsewhere in healthcare.
CSL shares are now trading around $174.80, above the average broker price target. Macquarie has a neutral rating and a target of just over $133, while UBS is more bullish at $181 and Morgan Stanley has a $172 target.
So, where could investors look instead?
Pro Medicus Ltd (ASX: PME)
Pro Medicus shares have endured a brutal 12 months, falling around 43%. But unlike CSL shares, the sell-off hasn’t been accompanied by a deterioration in the company’s underlying growth.
FY26 revenue increased 22.9% to $261.7 million, while underlying EBIT and NPAT climbed 24.4% and 24.1%, respectively.
Its Visage imaging software is already used by major healthcare systems across North America, yet management estimates it has captured only around 11% of the US market. That leaves plenty of room to grow.
Citi has a buy rating and $225 target, implying around 33% upside. Bell Potter is also bullish, with a $226 target, while Barrenjoey has a $210 target. JPMorgan is more cautious with a hold rating and $211 target.
ResMed Inc (ASX: RMD)
ResMed shares have bounced around 25% from their multi-year low in June, but remain down roughly 25% over 12 months. That’s a steeper decline than CSL shares, which still fell 18% over the same period despite their recent rebound.
The sell-off reflected broader pressure on healthcare shares, alongside macroeconomic uncertainty, inflation and cost-of-living concerns. A soft third-quarter update in May added to the pressure.
However, ResMed subsequently delivered a stronger fourth-quarter result, helping restore investor confidence.
The sleep-disorder specialist continues to deliver healthy revenue growth, expanding margins and strong free cash flow. Its third-quarter revenue rose 11% to US$1.4 billion, driven by demand for sleep devices, masks and accessories.
Most brokers rate ResMed shares buy or strong buy. The highest price target of $45.90 implies potential upside of around 46%.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix Pharmaceuticals operates in a highly specialised healthcare niche: radiopharmaceuticals. Its products combine radioactive isotopes with targeted diagnostics and therapies, helping doctors detect and treat diseases such as cancer with greater precision.
That creates significant barriers to entry and gives Telix shares an interesting growth profile that differs from CSL shares.
In August, Telix reported a 22% year-on-year increase in revenue to US$477 million, putting it towards the upper end of its FY26 guidance.
Brokers are increasingly bullish, with 13 of 16 analysts rating Telix shares buy or strong buy. The average $25.29 target implies roughly 53% upside from $16.50, while the most bullish forecast points to more than 85% potential upside.
For investors looking beyond CSL shares, these three healthcare names could offer considerably more upside.
The post Forget CSL shares. 3 ASX healthcare stocks with bigger upside 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, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL, Pro Medicus, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.