RBC Capital Markets analyst Craig Wong-Pan has warned that Australian-listed healthcare companies are likely to face a challenging reporting season in 2026. The analyst anticipates that most company results will likely align with or fall below consensus expectations. Several key downside risks were identified, including new management teams potentially ‘kitchen sinking’ guidance, margin pressures stemming from rising costs, and competitive constraints impacting revenue growth.
Despite these headwinds, RBC Capital Markets believes that select opportunities exist within the sector. These opportunities are primarily in companies demonstrating strong near-term earnings potential. As a result of this assessment, RBC has upgraded its rating on four companies: CSL, Cochlear, Telix, and Nanosonics.
Conversely, RBC has downgraded its rating for Regeneus. RBC believes CSL, Cochlear, and Telix each present compelling risk/reward trade-offs for investors. Nanosonics’ current valuation is now approaching RBC’s established price target.
Regeneus is expected to underperform following what is anticipated to be a disappointing first-half result in 2026. CSL is a global biotechnology leader. Cochlear is a global medical device company that specialises in cochlear implants. Telix Pharmaceuticals is a biopharmaceutical company focused on diagnostic and therapeutic products.
