Citi has identified ResMed, Telix Pharmaceuticals, and CSL as its top picks within the Australian healthcare sector, assigning each a “buy” rating. This assessment reflects Citi’s preference for companies with strong pricing power and top-line growth potential, particularly those in the drugs and devices segments. ResMed focuses on medical devices for respiratory conditions. Telix Pharmaceuticals is a biopharmaceutical company developing diagnostic and therapeutic products. CSL is a global biotechnology leader focusing on human health.
Laura Sutcliffe, an analyst at Citi, noted the firm’s general favouritism toward drugs and devices over healthcare services and providers, citing superior pricing power and growth capabilities. Pro Medicus is an exception due to its strong pricing power. Pro Medicus is a leading provider of medical imaging software.
Despite recognising Cochlear’s innovative product launches, Citi maintains a neutral stance on the device maker. This position is largely due to Cochlear’s exposure to consumer cost-of-living pressures, which introduces uncertainty into its market performance. Sutcliffe explained that these economic factors could impact Cochlear’s sales and overall financial stability.
The recommendations highlight Citi’s current outlook on the Australian healthcare market, favouring companies deemed resilient and capable of navigating economic headwinds. Investors often look to brokerage ratings for insights into potential investment opportunities and market trends.
