If you're interested in adding some healthcare sector exposure to your portfolio, then it could be worth taking a look at what Bell Potter is recommending.
It has named its top picks in the healthcare sector for 2023 and the two ASX healthcare shares named below are on the list.
Here's what the broker is saying about these shares:
PolyNovo Ltd (ASX: PNV)
This medical device company is an ASX healthcare share to buy according to Bell Potter. Its analysts currently have a buy rating and $2.30 price target on its shares. This compares to the latest PolyNovo share price of $2.04.
Its analysts believe a recent capital raising leaves PolyNovo well-placed for growth. It commented:
The key offering of Polynovo is the proprietary biodegradable temporising matrix (BTM) that is utilised in the management of complex wounds and severe burns. The recent $33m capital raising in November 2022 provides the growth platform to facilitate expansion of the US and global sales team with key markets in Asia & Canada being targeted. Product launch within Hong Kong and India has already taken place during 1H23 whilst entry into Japan/ China is planned through a distributor model. These new operating segments increase the addressable market especially in regions with a significant healthcare burden of burns and complex/trauma wounds.
Telix Pharmaceuticals Ltd (ASX: TLX)
Another ASX healthcare share to buy could be this radiopharmaceutical company. Its analysts currently have a buy rating and $9.00 price target on its shares. This is notably higher than the current Telix share price of $6.97.
The broker is expecting Telix's Illuccix product to generate material revenue in 2023. It also remains optimistic on its clinical trials. The broker explained:
We retain TLX as a key pick following very strong execution of its US business plan over recent months. Revenues from the sale of Illuccix continue to grow each quarter and the product is now expected to generate in excess of $300m in revenues in 2023. In the clinic, TLX 101 has generated positive trial data for the treatment of glioblastoma and TLX 250CDx reported positive data from its pivotal study for the imaging of clear cell renal carcinoma. The product is now expected to become the company's second on market in late calendar year 2023. Telix remains well capitalised with $117m in cash at 30 September 2022 and based on our forecast, is expected to generate its maiden profit in CY2023.
