There are a lot of quality options in the healthcare sector for investors to choose from.
But, according to Morgans, two of the best ASX healthcare shares to buy could be listed below.
Here's why the broker has them on its best ideas list:
CSL Limited (ASX: CSL)
Morgans is a very big fan of this biotherapeutics giant and has named it as a key portfolio holding. It feels its shares are good value based on the quality of its business and positive outlook. The broker said:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Morgans has an add rating and a $323 price target on its shares. This suggests a potential upside of 14% from where they currently trade.
ResMed Inc. (ASX: RMD)
Another ASX healthcare share that could be a buy is ResMed. It is a medical device company with a focus on sleep disorder treatment solutions.
Morgans believes ResMed is well-placed for the long-term thanks to sleep apnoea volume growth and its increasingly important digital business. It said:
While we expect the next few quarters to 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.
The broker currently has an add rating and a $37.80 price target on its shares. This implies a potential upside of approximately 18% from current levels.
