Pro Medicus Limited (ASX: PME) shares took a big hit yesterday, dropping almost 8% after analysts trimmed their near term earnings estimates.

This latest decline means that the ASX 200 tech stock has now fallen 30% from its record high.

Is this a buying opportunity? Let's see what one leading broker is saying about the health imaging technology company.

What's being said about this ASX 200 tech stock?

According to a note out of Bell Potter, its analysts remain very positive on Pro Medicus despite being one of a number of brokers to trim their forecasts this week.

Commenting on its earnings revisions, the broker said:

Following a review of the timing of new contract installations, we revise forecast revenues for FY25/26/27. From May 2024 to the present time, PME has signed 11 new deals including its largest ever deal in the United States being the Trinity Healthcare deal.

Revenues from Trinity commence from 1H26, however, installations will take place over approximately 18-24 months with the full run rate on exam revenues unlikely to be realised before 2H27. Due to these exceptionally high levels of new work and potential for delays on installations, there is more scope than at any time in the recent past for share price volatility upon the announcement of earnings.

The good news, though, is that Bell Potter remains very upbeat on the tech stock's outlook. It highlights that Pro Medicus' technology is still way ahead of the competition. It adds:

Download speed and native 3D imaging capability continue to be the major drivers of Visage uptake with these features driving the downstream productivity gains. Notwithstanding claims to the contrary by independent competitors (Sectra, Intelerad) the streaming capability of the core Visage system continues to underpin speed to view images from remote storage. We do not see this changing in the short term – despite peers having had years to develop a competing technology.

Time to buy

The note reveals that Bell Potter has retained its buy rating on the ASX 200 tech stock with a reduced price target of $280.00 (from $330.00).

This implies potential upside of 33% for investors over the next 12 months. It concludes:

FY25/26 EPS are downgraded by 6% and 14% respectively. EBITDA margin remains at ~75% and likely to continue to increase due to new contract wins and price increases from renewals to existing business. We maintain our Buy rating. Price target is revised to $280 (from $330).