English
Macro Intelligence
ASX 200 healthcare sector spotlight
In this week’s edition of IG Macro Intelligence, we take a closer look at ASX 200-listed healthcare stocks.
Healthy appetite among top healthcare stocks
Citi analysts have revealed their top picks in the Australia and New Zealand (ANZ) healthcare space, considering the impact of United States (US) tariffs, revenue drivers, and market sentiment.
ResMed, CSL, and Telix Pharmaceuticals top the list, while analysts remain neutral on Cochlear.
Top ANZ healthcare stocks
Strong pulse
ResMed (ASX:RMD)
ResMed shares are up around 16% over the past 12 months, despite underperformance in the past month.
ResMed daily candlestick chart
ASX Tradewatch data shows shares are in a long-term uptrend, suggesting a continued rally in both the short and long term.
ResMed historical trends and price targets
Citi analyst Laura Sutcliffe notes that ResMed has largely escaped the effects of US tariffs due to its sleep apnea equipment falling under the Nairobi Protocol. She also highlights ResMed's expansion, doubling its manufacturing capacity in the US, while maintaining operations in Australia and Singapore.
The broker has a 'buy' recommendation on ResMed with a target price of $51, indicating that the market may be undervaluing the company's potential to grow its gross margin in the medium term. This target is higher than the average recommendation surveyed by Refinitiv, suggesting a potential further rally of 17% to $48.60.
ResMed buy/sell indicators and analyst projections
On the subject of glucagon-like peptide-1 (GLP-1) weight loss drugs, Citi analysts suggest these could impact ResMed's total addressable market long term.
Meanwhile, ResMed Chief Executive Officer (CEO) Mick Farrell remains optimistic, stating that sleep apnea diagnostics complement their growth, providing a tailwind rather than a headwind.
CSL (ASX:CSL)
CSL shares took a hit after the fiscal year (FY) 2025 results, falling around 25% due to concerns about its outlook and plans to divest its Seqirus flu vaccine business.
CSL daily candlestick chart
Bell Potter downgraded its outlook to 'hold' from 'buy'.
However, Citi maintains a 'buy' rating with a target price of $265, suggesting a potential 33% upside, as the current valuation is considered supportive.
Shane Ponraj of Morningstar views CSL's recent downturn as masking long-term upsides, driven by plasma-driven margin gains, restructuring, and vaccine spin-off positioning it for a gradual recovery.
Despite these positive views, concerns remain about the company's demerger. David Lane from Ord Minnett points out uncertainty surrounding the valuation and execution of this move.
CSL buy/sell indicators and analyst projections
Telix Pharmaceuticals (ASX:TLX)
Telix Pharmaceuticals shares have underperformed, down almost 30% over the past year.
Telix daily candlestick chart
Citi sees several potential catalysts over the coming months for both its diagnostic and therapeutic franchises.
Sales exposure to United States
It initiated coverage on the stock with a 'buy' and high-risk rating and $34 target price, suggesting the stock could rally almost 145% from current levels.
The average broker recommendation on the stock is also a 'buy', with a median target price of $28.34, indicating an 88% upside.
Telix buy/sell indicators and analyst projections chart
However, technical analysis indicates a long-term bearish trend, with the 200-day moving average falling, suggesting low demand for the stock.
Telix historical trends and price targets
Stability check
Cochlear (ASX:COH)
Citi analysts are neutral on Cochlear, along with others like Fisher & Paykel, Ansell, and Ramsay Healthcare. The neutral rating is a downgrade from 'buy', with a revised target price of $320, down from $350.
Cochlear buy/sell indicators and analyst projections
Analysts are cautious about double-digit growth in the second half of FY 2026, given cost-of-living pressure challenges.
Despite Cochlear’s dominant position and innovation, analysts suggest holding the stock at current levels due to acknowledged service line revenue weaknesses.
Cochlear historical trends and price targets
Cochlear shares are up about 5% over the past 12 months. Despite multiple technical indicators confirming a downtrend, analysts suggest holding the stock at current levels.
Cochlear daily candlestick chart
Important to know
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Ready to open an IG account?
Start your trading journey now
Follow us online:
