Health Care and Biotech

Private hospital and pathology operator Healthscope is in the right place, given the current trends in Australia, and several brokers have initiated coverage.

Virtus Health’s result missed its own prospectus expectations but brokers suggest the market has overreacted to this and perceived competition, making the stock a strong value proposition based on solid growth forecasts.

CSL has guided to robust FY15 growth, confident in its ability to withstand competitive pressures.

BioProspect is developing a new diagnostic test for mental illness and Baillieu Holst initiates coverage on the stock.

Cochlear surprised the market and brokers with a better performance in the second half, but concerns abound around market share and growth in the company’s core business.

While some brokers have brushed aside recent sales weakness as temporary, others are not so sure ResMed’s growth rates will rebound substantially.

Central banks buy gold; new bank accounting standard; Aussies still like travelling; Primary Health Care sets up IVF clinic; and tough times ahead for retailers.

A solid reporting season is expected for the healthcare sector but brokers see divergence between individual stocks.

Michael Gable of Fairmont Equities believes the pullback in CSL is now complete, with the charts suggesting upside.

Ansell has embarked on a major rationalisation of its business but most brokers want to see how this pans out before reviewing the investment case.