Last week leading broker and research firm Bell Potter released its top picks for FY 2018.
So far we have covered the resources sector and the retail and professional services space. Today I thought I would take a look at the healthcare shares the broker is tipping to shine this year.
They are as follows:
iSelect Ltd (ASX: ISU)
Bell Potter has a buy recommendation on iSelect's shares and a price target of $2.38. While not strictly a healthcare share, a good portion of the company's sales are generated from health insurance price comparisons. Although it is a competitive market with low barriers to entry, the company has carved out an impressive market-leading position. As well as this, if the company can replicate its health insurance success in other verticals, it could provide the company with significant growth over the next couple of years.
Medical Developments International Ltd (ASX: MVP)
According to the research note, Bell Potter has a buy rating and a massive $7.56 price target on this fast-growing healthcare company. The broker believes that the company's Penthrox pain management product will provide the company with significant sales growth in the future, with the European market expected to be a key driver of growth in the near-term. I completely agree with Bell Potter on this one and believe Medical Developments International is a standout pick in the industry. The global expansion of Penthrox has so far been very successful, but has arguably only just begun. This could make it a great buy and hold investment.
Viralytics Ltd. (ASX: VLA)
Finally, this exciting biotech company has been given a speculative buy rating and a $2.33 price target. The broker appears to have been impressed with Viralytics' clinical trial results for its treatment for patients whose cancer has relapsed following treatment with first line therapies. I've written a few times in the past about Viralytics being one to watch and I still feel it is the case today. However, there is still a long road ahead for the company, so I'm not a buyer just yet. But I intend to keep a close eye on it and would suggest investors do the same.
