2 buy-rated ASX healthcare shares

ResMed Inc. (ASX:RMD) and this ASX healthcare shares have been given buy ratings. Here’s why they could be shares to own…

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Rising healthcare ASX share price represented by doctor giving thumbs up

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The healthcare sector has been a great place to invest over the last few years. Thanks to increasing demand due to a number of industry tailwinds, this side of the market has flourished.

The good news is that demand continues to increase and looks unlikely to stop doing so for some time to come. This could make the sector a great place to invest with a long term view.

But which ASX healthcare shares should you buy? Two to consider are listed below:

Ramsay Health Care Limited (ASX: RHC)

Few companies will benefit from increasing demand for healthcare services more than Ramsay Health Care. It is a leading private healthcare company with operations across the world.

While the pandemic led to a significant drop in elective surgeries, trading conditions have been improving greatly. As a result, Ramsay looks well-placed to benefit from a backlog in surgeries in the near term and increased demand for healthcare services over the long term. 

In addition to this, the company has a long history of accelerating its growth through acquisitions. And given its strong balance sheet, it wouldn’t be overly surprising to see the company make another purchase in the near term.

One broker that is a fan of Ramsay is Macquarie. Its analysts have an outperform rating and $75.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another quality healthcare share to look at is ResMed. It is one of the world’s leading sleep treatment-focused medical device companies.

Thanks to its industry-leading products, growing software business, the increasing awareness of sleep disorders, and its investment in R&D, ResMed has been growing at a consistently strong rate for a number of years.

Positively, the company still has a long runway for growth. This is thanks to its huge addressable market and the shift to home healthcare. The latter is being supported by its comprehensive out-of-hospital software platforms.

Morgans is bullish on ResMed. It currently has an add rating and $30.09 price target on its shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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