The team at Bell Potter has been busy running the rule over the healthcare sector and has picked out a number of stocks that it believes are attractive options right now.
Let's see what the broker is recommending investors buy now:
Clinuvel Pharmaceuticals Limited (ASX: CUV)
The first ASX healthcare stock that could be a buy according to the broker is Clinuvel Pharmaceuticals. It is a specialty pharmaceutical company focused on developing and commercialising treatments for patients with genetic, metabolic, systemic, and life-threatening, acute disorders.
Its key product is Scencesse, which is the only approved drug in the US and EU for patients with erythropoeitic protoporphyria (EPP).
Bell Potter believes the company is well-placed to deliver a strong result in FY 2025. Based on this and promising trial results, it feels that the company's shares are great value. It said:
The company's lean, vertically integrated business model has it on track to generate $97m rev in FY25 and EBITDA of $52m (VA cons $49m). We expect a strong full-year FY25 result as margins typically expand in 2H as more sales are booked in the lead up to the northern hemisphere summer. At an EV of ~$390m and ~7.4x EV/EBITDA, we view the existing EPP franchise alone comfortably supporting the share price, with potential step-change in market opportunity from vitiligo which is nearing a critical Ph3 de-risking event in ~1H CY26.
Bell Potter has a buy rating and $21.75 price target on its shares.
Mesoblast Ltd (ASX: MSB)
Another ASX healthcare stock that the broker is tipping as a buy is biotechnology company Mesoblast.
It highlights that the company is on the cusp of being profitable thanks to its recently approved Ryoncil stem cell therapy. It said:
Ryoncil is the company's long awaited first product to market and is indicated for treatment of steroid refractory acute graft vs host disease (SR aGvHD) in children under 17 years. […] SR aGvHD is an ultra orphan indication, nevertheless at US$1.3m per patient (minimum) and no competing therapy, MSB requires only modest market penetration to reach profitability.
Bell Potter has a speculative buy rating and $4.30 price target on its shares.
Telix Pharmaceuticals Ltd (ASX: TLX)
Finally, Telix could be an ASX healthcare stock to buy according to the broker.
This rapidly growing radiopharmaceuticals company is being tipped to have a bright future by Bell Potter. It said:
TLX is building a vertically integrated radiopharmaceutical specialist company providing research, product development, isotope production, supply chain management and distribution in order to capture most of the margin in these highly valued assets for medical imaging and therapy. The company aims to initially dominate the urology space with a range of products for imaging, therapy and surgery.
The broker has a buy rating and $36.00 price target on its shares.
