Due to favourable tailwinds such as ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.
In light of this, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:
Pro Medicus Limited (ASX: PME)
The first healthcare share that could be in the buy zone right now is Pro Medicus. It provides health imaging technology that facilitates the clinical assessment of medical images.
The company notes that its Visage 7 Enterprise Imaging Platform enables imaging organisations to do things they have always wanted to do, but never could. Visage 7 offers immediate differentiation for imaging organisations seeking to leapfrog the status quo of commoditised legacy PACS.
Demand for its offering has been growing strongly over the last few years, which has underpinned rapid revenue and earnings growth. The good news is that the team at Bell Potter believe this strong form can continue.
For example, the broker is forecasting net profit growth of 48% to $44.9 million in FY 2022. After which, it expects the company's profits to grow to $55.6 million in FY 2023 and then $82.2 million in FY 2024.
Bell Potter has a buy rating and $55.00 price target on Pro Medicus' shares.
ResMed Inc. (ASX: RMD)
Another ASX healthcare share that could be a top option for investors right now is ResMed. It is a medical device company with a focus on the sleep treatment products.
This includes medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders including sleep disordered breathing, chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.
The good news is that thanks to its significant market opportunity, the growing prevalence of sleep disorders, and new product launches, it has been tipped to continue its growth for the foreseeable future. Particularly with one of its biggest rivals out of action currently as it battles through a massive product recall.
Morgans is bullish on ResMed and currently has an add rating and $40.46 price target on its shares. The broker recently said that "nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain."
