Due to favourable tailwinds such as ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.
In light of this, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:
Nanosonics Ltd (ASX: NAN)
The first ASX healthcare share to look at is Nanosonics. It is a leading infection prevention company behind the popular trophon EPR ultrasound probe disinfection system. Last year this system was protecting an estimated 80,000 patients from the risk of cross contamination each day.
And while this is generating strong revenues, management isn't settling for that. The company is also busy researching and developing a number of new products which are due to be launched in the coming years.
One of these is AuditPro. It is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices. Another is the Nanosonics Coris platform. This new platform, which is expected to be launched in 2023, is for cleaning flexible endoscopes. This could be an even bigger market than ultrasound probe disinfection.
Morgans is positive on the company and has an add rating and $6.97 price target on its shares. This compares to the latest Nanosonics share price of $5.87.
Ramsay Health Care Limited (ASX: RHC)
Another ASX healthcare share to look at is Ramsay Health Care. It provides quality healthcare services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.
Although trading conditions have been tough over the last 18 months and recent elective surgery restrictions are weighing on its performance, the company has been tipped to bounce back strongly when trading conditions normalise. Particularly given the pent-up demand for healthcare services and its proposed acquisition of Elysium Healthcare.
Goldman Sachs is a fan of Ramsay. It currently has a buy rating and $74.00 price target on the company's shares. This compares favourably to the latest Ramsay share price of $67.25. The broker believes Ramsay's valuation is undemanding for a defensive asset leveraged to improving vaccine rates and a favourable growth profile.
