Goldman names 2 ASX healthcare shares to buy


If you’re looking for exposure to the healthcare sector, then the two shares listed below could be top options.

Here’s why analysts at Goldman Sachs believe they are well-placed for growth in the future:

Integral Diagnostics Ltd (ASX: IDX)

The first healthcare share to look at is diagnostic imaging services provider, Integral Diagnostics.

Goldman highlights that the recovery in imaging volumes from the COVID-19 pandemic is underway. Combined with easing cost pressures in FY 2023, the broker expects this to allow Integral Diagnostics to deliver strong earnings growth. The broker explained:

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.

Goldman Sachs has a buy rating and $4.20 price target.

Another ASX healthcare share that Goldman rates highly is ResMed.

Its analysts believe that ResMed is well-placed for growth thanks to a huge backlog of new patients waiting to be diagnosed. And while it acknowledges that there is a risk that these patients try alternative therapies, it doesn’t expect any shifts to substitutes to be material. The broker 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).

Goldman currently has a buy rating and $34.40 price target on ResMed’s shares.

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