The ASX healthcare shares Goldman Sachs rates as a buy

Here are the ASX healthcare shares rated as buys from Goldman Sachs' 4th small/mid-cap healthcare forum this week.

| More on:
two hands wearing medical gloves make the shape of a heart, indicating the best healthcare shares on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Goldman Sachs hosted its 4th small/mid-cap healthcare forum this week. This included 13 Australian and New Zealand healthcare companies across a diverse range of specialties. Here are the ASX healthcare shares that Goldman picked as a buy. 

Goldman's ASX healthcare shares to buy

Opthea Ltd (ASX: OPT

Opthea is developing a complementary medicine to be used with existing inhibitors for the treatment of wet age-related macular degeneration (wet AMD) and diabetic macular edema (DME). 

Goldman believes there is multi-billion dollar potential in Opthea's treatment. The broker observes that existing treatments only inhibit up to two of the factors responsible for retinal disease, with over half of patients not achieving significant vision gains and a quarter experiencing continued vision loss. 

The company's lead candidate, OPT-302 is intended to complement existing treatments to produce an improved outcome for patients. 

Opthea successfully completed a A$169 million initial public offering on the US NASDAQ market in September 2020, improving its cash position to A$203 million in 1H21. Goldman believes this secures the company's funding for the completion of two pivotal Phase 3 trials. 

Pro Medicus Limited (ASX: PME

Within the context of medical imaging, Goldman believes that "globally, there is rapidly growing demand for solutions that can process, transfer and store this data efficiently, particularly given that speed and accuracy is intrinsically linked to treatment outcomes and commercial incentives".

Pro Medicus shares have been chugging along and up 33% year-to-date to a near all-time record high of $47.22.

Goldman has observed that its 3Q21 transaction volumes are tracking above pre-COVID levels with a strong backlog/deferral stream to provide growth for months to come.

Goldman has modelled "an average of 5 contract wins per year, at an average minimum size of A$15m pa, reflecting recent order momentum and our expectation of heightened interest in this technology through the coming periods ".

Integral Diagnostics Ltd (ASX: IDX

Integral Diagnostics is one of the largest diagnostic imaging companies in Australia.

Goldman observes that the company's 1H21 growth of 6.5% was softer than the 8.3% improvement from Medicare.

This was largely driven by Integral's geographical weighting in Victoria which was impacted by regional lockdowns. Looking ahead, the company has commented that volumes in the second half are growing in line with expectations. 

The growth drivers highlighted by Goldman and Integral include a "steady positive mix shift towards high-acuity imaging" and "Medicare reimbursement re-indexation from July-20 at c.+1.5% pa".

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Integral Diagnostics Ltd and Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Woman going for a scan reassured by doctor
Healthcare Shares

How AI could boost this ASX 300 healthcare stock

The Firetrail investment management team see AI providing a 'material tailwind' for this stock.

Read more »

A man in a white coat holds a laptop in one hand and his head in the other, it's bad news.
Healthcare Shares

Why is the ResMed share price diving 5% today?

Weight loss wonder drugs are weighing heavily on this stock.

Read more »

a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.
Healthcare Shares

Why is the Telix share price jumping 15% to a record high?

This healthcare stock is scaling new heights on Thursday. But why?

Read more »

Stressed thoughtful old female general practitioner doctor physician looking in distance, considering difficult medical problem solution or illness treatment, working on computer in clinic office.
Healthcare Shares

How much do you need to invest in CSL shares for $8,000 in annual dividends?

CSL's dividends are exponentially more valuable for long-term investors.

Read more »

smiling health care workers in a medical setting
Healthcare Shares

'Critical unmet need': Why everyone is talking about this ASX 200 healthcare stock

This healthcare stock has been given a boost from the US FDA today.

Read more »

Senior woman with caregiver in the garden
Healthcare Shares

Why this ASX 200 stock is a retiree's dream

I think this is a very healthy and resilient stock.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

3 ASX 200 healthcare stocks that could deliver big returns for investors

Analysts see a lot of value in these stocks at current levels.

Read more »

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline
Healthcare Shares

Why are so many top fundies overweight on CSL shares?

This is a healthy opportunity, according to a number of fund managers.

Read more »