If you're looking for exposure to the healthcare sector, then you may want to check out the three buy-rated shares listed below.
Here's why the team at Morgans rates them as buys:
Cochlear Limited (ASX: COH)
The first healthcare share to look at is Cochlear. Morgans is a fan of this hearing solutions company due to its belief that its earnings profile is improving as COVID headwinds ease. Its analysts recently upgraded Cochlear's shares to an add rating with a $233.20 price target.
It said: "Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management's increasing confidence, is all suggestive of an improving earnings profile."
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Healius Ltd (ASX: HLS)
Another healthcare share to look at is Healius. Morgans likes this healthcare provider due to its attractive valuation, ongoing demand for PCR testing, and a post-COVID rebound in its base business. The broker has an add rating and $5.26 price target on its shares.
The broker explained: "We continue to believe HLS is attractively valued and well placed, benefiting from the likely continuance of COVID PCR testing (at some level) and from the inevitable rebound in demand from a backlog in diagnosis and surgery."
ResMed Inc. (ASX: RMD)
This sleep treatment focused medical device company's shares could be in the buy zone. Morgans currently has an add rating and $40.46 price target on its shares. The broker likes ResMed due to its long term growth potential.
It commented: "While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, 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."
