Ramsay Health Care Ltd (ASX: RHC) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $42.74. In late morning trade on Friday, shares are changing hands for $42.65 apiece, down 0.2%.

For some context, the ASX 200 is just about flat at this same time.

Taking a step back, Ramsay Health Care shares have strongly outperformed in 2026, up 23.3% compared to the 0.3% year to date gains posted by the benchmark index.

And the ASX 200 healthcare stock also recently increased its passive income payouts, boosting its fully franked interim dividend by 6.3% to 42.5 cents a share.

Ramsay Health Care stock currently trades on a 1.9% fully franked trailing dividend yield.

And looking ahead, Nathan Hughes, an Australian equities portfolio manager at Perpetual, believes there’s plenty more upside potential for the Aussie-focused healthcare provider (courtesy of The Australian Financial Review).

Here’s why.

Should I buy Ramsay Health Care shares today?

Asked which stock his fund holds that’s most undervalued by the market, Hughes replied, “Ramsay Health Care presents compelling upside.”

He noted, “The negatives, such as labour inflation and changes to private health insurance rebates that may impact industry participation, are now well understood.”

And Ramsay Health Care shares could benefit from their renewed focus on the Aussie market.

According to Hughes:

Beyond the demerger of the Ramsay Santé assets – the European hospitals business Ramsay announced it would spin off in February – we think it’s clear the focus of the company is the core Australian business.

There is significant opportunity to improve operating performance and asset productivity in this division, with a sensible approach to capacity and utilisation in contrast to years of expansion. As such, return on invested capital should improve.

Hughes also pointed to the company’s strong balance sheet and the fully franked dividend on offer as reasons to be optimistic for ongoing share price growth.

He concluded:

Further capital repatriation from offshore is not out of the question in the medium term. This would give the company plenty of financial flexibility, noting Ramsay has a large balance of surplus franking credits.

What’s the latest from the ASX 200 healthcare stock?

Ramsay reported its half year results (H1 FY 2026) on 26 February.

Highlights for the six months to 31 December included underlying earnings before interest and tax (EBIT) of $536.7, up 7.3% year on year.

And on the bottom line, underlying net profit after tax (NPAT) of $171.7 million increased by 8.1%.

Ramsay Health Care shares closed up 10.4% on the day of the results release.

The post Up 23% this year, why Ramsay Health Care shares are tipped for more ‘compelling upside’ appeared first on The Motley Fool Australia.

More reading

• Ramsay Health Care shares rebound 15% in June: Can they keep going?
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Recce Pharmaceuticals Ltd (ASX: RCE) shares are being hammered on Friday after the ASX biotech company released an update.

At the time of writing, the Recce share price is down a massive 18.48% to 37.5 cents.

That leaves the ASX healthcare stock down 40% since the start of 2026, wiping out a large chunk of its earlier momentum. However, the stock is still up 25% over the past year.

The latest announcement appears to have rattled investors, raising questions about Recce’s funding needs and whether the market is losing patience.

Recce is developing synthetic anti-infectives designed to address antimicrobial-resistant infections.

The capital raise behind the sell-off

According to the release, Recce has received firm commitments to raise $4 million before costs through an institutional placement.

The company will issue 10 million new shares at 40 cents per share.

The placement price appears to be the sticking point for investors. It is slightly above the current share price, but still well below where Recce shares were trading before the update.

Reece is also launching a share purchase plan (SPP) to raise up to another $4 million. Eligible shareholders can apply for up to $30,000 worth of new shares on the same terms as the placement.

Investors taking part in the placement and SPP will also receive one free attaching option for every two new shares issued. These options will have an exercise price of 60 cents and expire on 30 June 2027.

On top of that, holders who exercise those attaching options will receive two piggyback options, with an exercise price of $1 and an expiry date of 30 June 2028.

Where the money is going

Recce said the funds will be used across several parts of the business.

The cash will help strengthen its balance sheet, support commercial licensing work with a leading Middle Eastern pharmaceutical company, and fund clinical trials.

The company pointed to ongoing work on diabetic foot infections, including a Phase 3 registration trial in Indonesia and another in Australia.

Funds will also go toward activities linked to an Investigational New Drug application with the US Food and Drug Administration (FDA) and Indonesia’s BPOM.

After the offer, Recce expects pro forma cash liquidity of approximately $29.5 million before offer costs.

Can Recce win back investors?

Capital raisings can be very hard for smaller biotech companies, especially when commercial revenue is still limited.

Recce’s market capitalisation is now about $108 million, so a potential $8 million raise is definitely meaningful.

The company now needs to show that this funding can support clinical progress, regulatory work, and commercial deals. 

Until then, it looks like investors are staying on the sidelines.

The post Guess which ASX stock is crashing 18% today appeared first on The Motley Fool Australia.

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• Up 23% this year, why Ramsay Health Care shares are tipped for more ‘compelling upside’

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are just inside the green, up 0.03%, at 8,752.1 points on Friday.

This week, brokers have renewed their buy ratings and updated their 12-month price targets on several ASX 200 shares.

Let’s take a look.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 90 cents, down 1.6% today.

This ASX 200 bank share was smashed yesterday, collapsing 46% on a profit guidance downgrade.

Today, Morgans renewed its buy rating on Judo shares but slashed its 12-month target price from $2.15 to $1.47.

This implies a potential bounce back of more than 60% over the next year.

Morgans said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point.

The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26).

A significant risk premium or probability of failure has been priced into the stock. BUY.

BHP Group Ltd (ASX: BHP)

The BHP share price is $57.17, up 1.1% today.

The market’s largest ASX 200 mining share has lifted 29% in the year to date (YTD).

BHP shares have dropped almost 10% since last Thursday amid news of a $2.8 billion cost blow-out at its Jansen potash project.

Morgan Stanley reiterated its buy rating on BHP shares with a price target of $67.50.

This implies a potential 14% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $10.65, down 0.6% on Friday.

The ASX 200 airline share has ripped 18% over the past month.

Ord Minnett reiterated its buy rating on Qantas shares this week.

The broker raised its 12-month price target from $10.50 to $11.50.

This suggests a potential 8% upside ahead.

Goodman Group (ASX: GMG)

The Goodman share price is $32.06, down 0.4% today.

The ASX 200’s biggest real estate share has risen 4% YTD.

Citi renewed its buy rating on Goodman shares with a $40 target yesterday.

This suggests a potential 25% upside ahead.

NextDC Ltd (ASX: NXT)

The NextDC share price is $14.44, down 1.9% today.

This ASX 200 tech share has risen 17% YTD amid a broader sector rebound.

Citi reiterated its buy rating on NextDC shares with a price target of $19.10.

This implies potential capital growth of 32% ahead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are $9.33, down 2.8% today.

The ASX 200 defence share has lost 6% of its market valuation YTD.

Bell Potter renewed its buy rating on Electro Optic Systems shares this week.

The broker increased its 12-month price target from $10.60 to $12.50.

This suggests a potential 34% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is $19.02, up 1.7% today.

This ASX 200 rare earths share has ripped 56% higher YTD.

UBS upgraded Lynas Rare Earths shares to a buy rating with a $23.65 target on Thursday.

This implies a potential 24% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.12, down 1.2% today.

Over the past month, this ASX 200 financial share has lifted 8%.

Goldman Sachs reiterated its buy rating on IAG shares with an $8.60 target yesterday.

This suggests a potential 6% upside ahead.

The post 8 ASX 200 shares with reaffirmed buy recommendations this week appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Goldman Sachs Group, and Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.