2 ASX healthcare shares analysts rate highly

Looking for healthcare options? Check out these shares…

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Due to ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.

As a result, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you buy? Two highly rated healthcare shares to consider are listed below:

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Healius Ltd (ASX: HLS)

The first healthcare share to look at is Healius. It is one of Australia's largest pathology and diagnostic imaging providers offering services via numerous brands. These include Dorevitch Pathology, QML Pathology, Laverty Pathology, and Healthcare Imaging Services.

Healius has been a particularly positive performer in FY 2021, reporting a 16% increase in first half revenue to $953.5 million. Things were even better on the bottom line, with first half net profit growing 190% to $75.6 million. This was driven by a very strong performance by its key pathology business, which reported a 22% increase in revenue to $711.4 million and wider margins.

More of the same is expected in the second half, with a bumper full year results being forecast by brokers in August. One of those is Macquarie, which is very bullish on its prospects. The broker currently has an outperform rating and $4.85 price target on its shares.

Nanosonics Ltd (ASX: NAN)

Another healthcare share to consider is Nanosonics. It is a leading infection prevention company behind the popular trophon EPR ultrasound probe disinfection system and associated consumables and accessories.

At present, the company estimates that 80,000 patients are protected from the risk of cross contamination each day because the ultrasound probe has been high-level disinfected with trophon.

Nanosonics has also been researching and developing a number of secretive products, which are due to be launched in the coming years. One of these has just been revealed and is AuditPro. It is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices.

The first focus will be on marketing it as a solution for the ultrasound market, with potential for the new product to be coupled with every ultrasound console at point of care.

One broker that is very positive on its prospects is Morgans. According to a recent note, the broker has an add rating and $6.57 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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