Goldman names 2 ASX healthcare shares to buy

private health insurance diagram.

private health insurance diagram.

If you’re looking for exposure to the healthcare sector, then the two shares listed below could be top options.

Here’s why analysts at Goldman Sachs believe they are well-placed for growth in the future:

Integral Diagnostics Ltd (ASX: IDX)

The first healthcare share to look at is diagnostic imaging services provider, Integral Diagnostics.

Goldman highlights that the recovery in imaging volumes from the COVID-19 pandemic is underway. Combined with easing cost pressures in FY 2023, the broker expects this to allow Integral Diagnostics to deliver strong earnings growth. The broker explained:

Looking forward, we expect the cost pressures to taper in FY23E (+7%), albeit with upside if management achieves their target of low-single-digit growth which, on our numbers, would result in favorable EBITDA growth of +23% in FY23E.

Goldman Sachs has a buy rating and $4.20 price target.

ResMed Inc (ASX: RMD)

Another ASX healthcare share that Goldman rates highly is ResMed.

Its analysts believe that ResMed is well-placed for growth thanks to a huge backlog of new patients waiting to be diagnosed. And while it acknowledges that there is a risk that these patients try alternative therapies, it doesn’t expect any shifts to substitutes to be material. The broker commented:

There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).

Goldman currently has a buy rating and $34.40 price target on ResMed’s shares.

The post Goldman names 2 ASX healthcare shares to buy appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Cochlear Ltd. and Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/oBaOsLI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s