If you're looking for exposure to the healthcare sector, then Goldman Sachs has got your back.
This morning the broker named three ASX healthcare shares that it believes are well-placed for growth in the future.
Cochlear Limited (ASX: COH)
Goldman Sachs has a buy rating and $237.00 price target on this hearing solutions company. Its analysts believe Cochlear is well-placed to at least meet its guidance in FY 2022. It explained:
Whilst the recovery [from the pandemic] will still be mixed, we believe the steady declines in hospitalisation rates across key markets, supportive backlog volumes and improved margin trajectory support a much improved picture from here. [..] As such, we believe current targets for FY22 offer the best chance in several years for COH to deliver at/above the top-end of its guided range (GSe: A$297m).
Integral Diagnostics Ltd (ASX: IDX)
The broker is also a fan of this diagnostic imaging services provider and has a buy rating and $4.20 price target. Goldman highlights that the recovery in imaging volumes is underway. It is also expecting cost pressures to ease in FY 2023, allowing Integral Diagnostics to deliver strong earnings growth. It said:
Looking forward, we expect the cost pressures to taper in FY23E (+7%), albeit with upside if management achieves their target of low-single-digit growth which, on our numbers, would result in favorable EBITDA growth of +23% in FY23E.
ResMed Inc (ASX: RMD)
Goldman currently has a buy rating and $34.40 price target on this sleep treatment company's shares. The broker highlights that ResMed has a huge backlog of new patients waiting to be diagnosed that should be supportive of growth. It commented:
There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).
