Three S&P/ASX 200 Index (ASX: XJO) healthcare stocks are well placed to benefit from growing demand for their services in 2025.
That's according to Piers Bolger, chief investment officer of Infinity Asset Management.
Commenting on the investment outlook for 2025, Bolger said, "Overall, the investment outlook for 2025 is positive but cautious."
He added:
Lower interest rates and strong equity dynamics present opportunities but risks like geopolitical tensions and uneven global growth require careful navigation. A flexible, growth-focused approach will be essential to manage challenges and seize opportunities.
Citing high valuations and declining earnings, Bolger said he's cautious on ASX 200 bank stocks.
But he has a positive outlook for the healthcare sector.
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ASX 200 healthcare stocks facing demand growth in 2025
Drilling into three specific ASX 200 healthcare stocks he's bullish on, Bolger named global pathology provider Sonic Healthcare Ltd (ASX: SHL), biotech giant CSL Ltd (ASX: CSL), and sleep disorder treatment company ResMed Inc (ASX: RMD).
"Companies like CSL, ResMed, and Sonic Healthcare are set to benefit from growing demand for pathology, blood plasma, and medical devices," he said. "These companies are trading at attractive prices and have strong return potential."
What's been happening with the Aussie healthcare companies?
ResMed reported its first quarter FY 2025 results on 25 October.
The ASX 200 healthcare stock gained 5.9% on the day after reporting an 11% year on year lift in revenue for the three months to 30 September of US$1.22 billion. 34% Operating profit was up 34% from the prior corresponding quarter.
Increased demand for the company's sleep devices and masks drove revenue growth. ResMed also reported growth across its Residential Care Software segment.
"Our first-quarter fiscal year 2025 results reflect ongoing momentum and strong execution across all areas of our business," ResMed CEO Mick Farrell said at the time.
ASX 200 healthcare stock Sonic reported its full FY 2024 results on 22 August.
Core financial metrics included a 9.8% year-on-year increase in revenue to $8.97 billion. Net profit after tax (NPAT) was down 25% from FY 2023 to $511 million.
"The 2024 financial year can be summarised as a transition period for Sonic Healthcare, as we moved away from the impacts of the pandemic towards business as usual," Sonic CEO Colin Goldschmidt said at the time.
As for CSL, the biotech company reported its FY 2024 results on 13 August.
The ASX 200 healthcare stock achieved an 11% year-on-year increase in revenue (in constant currency) to US$14.8 billion. And net profit after tax before amortisation was up 11% to US$2.91 billion.
"Our largest franchise, the immunoglobulins portfolio, delivered exceptional growth driven by significant patient demand, and the recovery in CSL Behring's gross margin is progressing to plan," CSL CEO Paul McKenzie said following the results.
