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If you are interested in gaining exposure to the healthcare sector, Healthco Healthcare and Wellness REIT (ASX: HCW) stock.
Is the latest addition to Goldman Sachs A list of convictions with a purchase rating and a $ 2.56 price target.
This means that shares in Healthco Healthcare and Wellness REIT could rise by about 15.5% over the next 12 months.
Goldman forecasts an attractive 3.3% dividend yield, with potential returns of nearly 19%.
What is Healthco Healthcare and Wellness REIT?
Healthco Healthcare and Wellness REITs own a portfolio of healthcare and wellness assets primarily in East Coast states.
Goldman Sachs believes it offers a good combination of defense and attack given the external growth runway. On defense, brokers say the weighted average has an expiration date of about 9.4 years and the majority have strong tenant contracts in government-sponsored subsectors.
Meanwhile, brokers say Australia’s healthcare real estate sector is still in its infancy, providing significant runway room for growth through acquisitions and foundation development.
Another reason Goldman is positive is its exposure to sub-sector megatrends.
It commented as follows: “We believe that the opportunities set for healthcare-related assets are vast and supported by major megatrends within Australia: 1) Australia’s aging population, 2) increased government spending, and 3) technology. Improvements, 4) Increased Health Consumption Related Services. The company will need to invest an additional A $ 87 billion in healthcare assets over the next 20 years, in addition to its current A $ 218 billion asset base. I estimate that it will be. “
“Given HCW’s strong balance sheet, attractive industry fundamentals, and runways for external growth of our portfolio, we will start coverage with purchases (added to CL),” he concluded.
Goldman Sachs has added this ASX Healthcare Share to the conviction purchase list
Source link Goldman Sachs has added this ASX Healthcare Share to the conviction purchase list