Are CSL and this ASX 200 healthcare stock buys in January?

Is now a good time to pick up these shares? Let's see what analysts are saying.

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Are you looking for some exposure to the healthcare sector for your portfolio in January 2025?

If you are, could it be worth looking at the ASX 200 healthcare stocks in this article?

The short answer is yes. That's because they have recently been named as buys and tipped to deliver good returns for investors over the next 12 months. Let's dig deeper into why analysts are bullish on them:

CSL Ltd (ASX: CSL)

The team at Bell Potter thinks that CSL could be a great ASX 200 healthcare stock to buy in 2025.

It is a global biotechnology company that is engaged in research, development, manufacture, marketing and distribution of biopharmaceutical products and vaccines.

After a few underwhelming years, Bell Potter believes that CSL is about to return to form and deliver strong earnings growth over the coming years. This is being underpinned by the key CSL Behring plasma therapies business. It explains:

We expect CSL will achieve guidance of "annual double-digit earnings growth" over the mid-term driven largely by the legacy plasma business, Behring, particularly its immunoglobulin sales. While CSL's Seqirus and Vifor business units do face near-term headwinds (reduced flu market demand and generic iron competition), these two units combined only contribute less than a third of total earnings. CSL continues to be a high quality, global operator with a multi-year gross margin recovery well underway to drive earnings expansion. The stock is currently trading at a 12m forward PE 27% and 19% below 5- and 10-year averages, respectively.

Bell Potter has a buy rating and $345.00 price target CSL's shares. This suggests that upside of almost 23% is possible over the next 12 months.

Pro Medicus Limited (ASX: PME)

Another ASX 200 healthcare stock that could be a buy in 2025 is Pro Medicus.

It is a leading health imaging technology company developing radiology information system (RIS) software and services for hospitals, diagnostic imaging groups, and other related healthcare providers.

The team at Goldman Sachs thinks that it would be a great option for investors. This is because it believes the company's Visage platform is going to dominate the industry for some time to come. It explains:

Key reasons for our positive view: (1) We believe the adoption of Visage is a matter of when, not if, for many US healthcare institutions including academics, IDNs and smaller, independent clinics, with our Visage terminal market share expectations >30% amid increasing competition; (2) As a top 5 US IDN, we expect the Trinity contract to drive a network effect across this cohort which represent >40% of PME's core TAM;

(3) We see a significant opportunity to expand customer spend, through existing products (i.e. Cardiology, AI) and new white space products (i.e. other 'ologies'). Amid an intensely competitive AI healthcare market, we believe PME stands out to succeed given its unique partnership with industry KOLs, launching four new solutions with academics at RSNA 2024; and (4) PME has a track record of delivering profitable growth with best in class margins, including >70% under the 'Rule of 40' which we believe is sustainable through the cycle.

Goldman has a buy rating and $278.00 price target on its shares, which implies potential upside of over 10% for investors.

Motley Fool contributor James Mickleboro has positions in CSL and Pro Medicus. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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