One area of the market which I think is a great place to consider long term investments is the healthcare sector.
Luckily, there are a large number of quality shares to choose from. Three which have recently been rated as buys are listed below. Should you be snapping up their shares?
CSL Limited (ASX: CSL)
A note out of the Macquarie equities desk two weeks ago revealed that its analysts have retained their outperform rating and increased the price target on the global biotech giant’s shares to $230.00. The broker believes CSL is a buy due to being well-positioned to meet the growing immunoglobulin demand thanks to the roll out of its new plasma collection centres. In addition to this, Macquarie appears pleased by the favourable shift in its sales mix to higher margin products such as Idelvion and Haegarda. I would agree with Macquarie on this one and think CSL’s shares are a great option for investors.
Primary Health Care Limited (ASX: PRY)
Earlier this month a note out of Citi revealed that its analysts had upgraded Primary Health Care’s shares from a sell rating to buy with an increased price target of $3.20. The broker believes that Primary Health Care’s shares are relatively attractive versus the rest of the sector. Furthermore, Citi appears optimistic on the prospects of its medical centres and increased its forecasts for the segment. I’m not a big fan of Primary Health Care at the moment and believe there are better options elsewhere in the healthcare sector.
ResMed Inc. (ASX: RMD)
On Monday Goldman Sachs released a positive note relating to this sleep treatment specialist. According to the note, the broker has retained its buy rating and $16.70 price target on the company’s shares following its investor day in San Diego. Goldman estimates that the CPAP market is growing around the top of its historical mid-high single digit range and it believes ResMed’s superior portfolio and effective commercial strategy is allowing it to achieve stronger growth. I agree with Goldman on ResMed and think it is a buy.
Looking for more shares to buy? Here are three top growth shares which could be market-beaters in FY 2019.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.