Stocks in the healthcare sector are getting a lot of airplay at the moment, with the likes of Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) experiencing sharp falls in its share price off the back of rising health premiums out of NIB Holdings Limited (ASX: NHF) and Medibank Private Ltd (ASX: MPL).
But at the small cap end of the scale brokers are circling biological research company Medlab Clinical Ltd (ASX: MDC) as a potential buy in, albeit, it is only one to consider for investors who don't mind speculative stocks in their portfolio.
Analysts at Asia Pacific Prudential Securities (APP) have placed a buy rating on Medlab with a $1.20 target price – Medlab shares were down 0.7% to 66c per share at the time of writing.
It is forecast by APP that Medlab is about to enter a period of strong earnings growth off the back of its medicinal marijuana products with NanaBis.
Medlab completed a $24 million capital raising in January this year, but will likely need to raise more capital soon for the rollout of its new products.
It's a speculative pick for sure, and investors would have to do their own research before they make the call on Medlab, but the company has been granted licenses to supply Schedule 8 drugs, which will include NanaBis under the governments Special Access Scheme (SAS).
