2 excellent ASX 200 healthcare shares named as buys

Check out these excellent ASX 200 healthcare shares…

| More on:
Group of doctors celebrate by pumping fists in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The healthcare sector could be a good place to look for long term investment options. This is due to a number of positive tailwinds that are supportive of growth such as ageing populations and increased cases of chronic disease.

But which ASX 200 healthcare shares should you consider? Here are two that are rated highly:

CSL Limited (ASX: CSL)

The first ASX 200 healthcare share to look at is CSL. It is one of the world's leading biotherapeutics companies.

It has been an exceptionally positive performer over the last decade due to a number of factors. This includes successful acquisitions, its high level of investment in research and development (R&D) activities, its growing plasma collection network, and increasing demand for its leading therapies and vaccines.

In respect to its therapies, CSL's portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. And thanks to its almost billion-dollar (and growing) annual investment in R&D, this portfolio will continue to expand in the future.

While the pandemic has hit plasma collections and could lead to elevated costs in the near term, this headwind is only expected to be temporary. In light of this, it could be worth being patient with its shares. UBS currently has a buy rating and $3.30 price target on the company's shares.

Sonic Healthcare Limited (ASX: SHL)

A second ASX 200 healthcare share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Sonic certainly has had the wind in its sails over the last 12 months. This led to the company reporting a 33% increase in half year revenue to $4.4 billion and a 166% jump in first half net profit to $678 million in February. Pleasingly, an equally strong second half is expected.

This is being driven largely by strong demand for COVID-19 testing services but also positive performances across the rest of the business.

One broker that is a fan of the company is Credit Suisse. Last month it retained its outperform rating and lifted its price target to $43.50.

It expects demand for its testing services to increase as more transmissible COVID variants spread widely and cause an uptick in infections. It expects this to support strong earnings, allowing Sonic to pay down debt and support potential acquisitions.

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 CSL Ltd. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »

A couple smile as they look at a pregnancy test.
Healthcare Shares

Why this sold-off ASX healthcare share could be an exciting dividend buy

This could be a healthy stock for dividends.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Healthcare Shares

Is CSL the best ASX 100 share to buy now?

Bell Potter has good things to say about this blue chip star.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23
Healthcare Shares

Down 10% in a month, are CSL shares feeling the sting of a potential disruption?

Brokers are still bullish.

Read more »

One girl leapfrogs over her friend's back.
Healthcare Shares

Doubled in a year! Does this booming ASX share have another 24% upside?

Let's take a look.

Read more »