The federal budget has, understandably, been the talk of the town today, with many market watchers questioning which shares will be budget winners and which might be less fortunate. And while ASX stocks in the retail, fuel, and automotive sectors have been in focus for various reasons, one broker is flagging a win for healthcare shares.
So, why are ASX healthcare shares Sonic Healthcare Limited (ASX: SHL), Healius Ltd (ASX: HLS), and Australian Clinical Labs Ltd (ASX: ACL) in the post-budget spotlight? Let's take a look.
Image source: Getty Images
These 3 ASX healthcare shares might benefit from the budget
Broker RBC Capital Markets believes ASX healthcare shares could get a boost from extra spending on Medicare announced in the 2022/23 budget, as reported by the Australian Financial Review.
The broker is keeping an eye on ASX pathology giants on the back of a $546 million commitment to Medicare Benefits Schedule items used to conduct PCR tests.
The funding is intended to support Australia's pandemic response. However, it surprised the broker. RBC Capital Markets was quoted as saying:
The Government has extended the Medicare schedule for COVID testing.
However, the amount budgeted for 2022-23 suggests upside to our [financial year 2023] COVID testing forecasts if the budget assumptions eventuate.
Of course, more testing is likely good news for the pathology giants. Though, it might be slightly offset by more free Rapid Antigen Tests (RATs).
The government has also committed to spend another $1.6 billion to ensure all Australians have equitable access to RATs.
The broker's rose-coloured prediction didn't manage to boost the ASX healthcare giants' share prices on Wednesday.
None of the three pathology stocks significantly beat the S&P/ASX 200 Index (ASX: XJO)'s 0.67% gain.
At market close, the Sonic Healthcare share price is 0.17% higher at $35.79.
Meantime, Australian Clinical Labs ended the day in the green, gaining 0.2% to close at $5.11.
Finally, the Healius share price slightly outperformed the ASX 200 today. It rose 0.68% to finish at $4.43.
