Australian healthcare sector set to outperform as pandemic fades out - Citi

Integral Diagnostics

08/03/2022 23:48

** Australian healthcare sector  .AXHJ  will benefit from the end of
the COVID-19 pandemic, Citi Research says
    ** Brokerage adds companies like Cochlear Ltd  COH.AX , CSL Ltd
 CSL.AX , Integral Diagnostics  IDX.AX , Ramsay Health Care  RHC.AX  and
ASX-listed shares of Resmed Inc  RMD.AX  will outperform in the coming
year 
    ** Remains "positively disposed" to biotech giant CSL, retains "buy"
rating and price target of A$335
    ** Rates glove maker Ansell Ltd  ANN.AX  "buy," sees COH earnings
rising over next two years, and expects RHC's several years of positive
earnings momentum to resume as pandemic subsides
    ** Sees normalisation of revenue growth and margins across the
sector from FY24
    ** AXHJ down 14.4% this year, as of last close, vs a 6.2% decline in
the ASX 200 benchmark index  .AXJO 
    
                                         EPS estimates (AU cents)
 Company               PT (A$)  Rating   FY22         FY23
 Ansell Ltd            36.5     Buy      121.9        124.6
 Cochlear              235      Buy      454.7        506.3
 CSL Ltd               335      Buy      514.9        637.6
 Healius Ltd           4.65     Neutral  57.7         21.4
 Integral Diagnostics  4.85     Buy      14.2         21.1
 Ramsay Health Care    75       Buy      189.4        279.4
 Resmed Inc            38       Buy      601.9        677.7
 Sigma Healthcare      0.5      Neutral  3.8          3.3
 Sonic Healthcare      39       Neutral  290.7        177.5
 

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))