With demand for healthcare services expected to grow strongly over the next decade due to population growth, shifts in demographics, and improving technologies and treatments, the healthcare sector has been tipped as a place to invest.
But which shares should you buy? Two top ASX healthcare shares that could be worth a closer look are listed below:
Cochlear Limited (ASX: COH)
When it comes to shifting demographics, and particularly in respect to the growing number of over 65s, there are few companies that stand to benefit as much as Cochlear. It is a global developer, manufacturer, and distributor of cochlear implantable devices for the hearing impaired.
As hearing loss is typically a part of the ageing process, a growing number of over 65s globally is expected to lead to an increase in demand for hearing solutions in the coming decades. And thanks to its industry-leading products and the high barriers to entry, Cochlear appears well-placed for long term growth.
Macquarie is a fan of the company and has an outperform rating and $241.00 price target on its shares.
CSL Limited (ASX: CSL)
This biotherapeutics company is another which has been tipped to have a bright future. This is because CSL appears to be in a strong position for growth over the long term due to increasing demand for immunoglobulins, its expansive plasma collection network, growing demand for influenza vaccines, and its burgeoning research and development pipeline.
The latter has some very lucrative therapies under development and is being underpinned by a material investment each year. In fact, in FY 2021, CSL will be investing approximately ~US$1 billion into its research and development activities. This follows a US$922 million investment in FY 2020.
One broker that is particularly positive on the company's prospects is UBS. It recently put a buy rating and $346.00 price target on CSL's shares.
