Goldman Sachs names 3 ASX healthcare shares to buy

Here are three healthcare shares that Goldman rates highly…

| More on:
a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

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

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).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd. and ResMed Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Cochlear Ltd. and Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Shot of a mature scientists working on a laptop in a lab.
Healthcare Shares

Is this a new threat for CSL shares?

There's a new wonder drug on the scene. Should shareholders be concerned?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

private health insurance diagram.
Healthcare Shares

What's going on with the Medibank share price today?

Shareholders will be happy to see Medibank shares drop in value today.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »

Health professional working on his laptop.
Healthcare Shares

Ramsay Health Care share price falls on profit crunch and dividend cut

This private hospital operator continues to battle with higher costs.

Read more »

A scientist in a white coat and glasses puts her arms in the air in a sign of strength and success.
Healthcare Shares

Guess which ASX pharmaceuticals stock is up 400% in 2 days

Big returns have been generated from this pharma stock this week.

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 this ASX 200 pharmaceuticals stock crashing 15% today?

Investors haven't responded positively to a sales update.

Read more »

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Share Gainers

This small-cap ASX stock just rocketed 39%. What's doing?

A stock no one has heard of is lighting up trading screens on Wednesday. You might hear this name more…

Read more »