Goldman Sachs has started covering a rapidly growing, high-margin health tech sector that it says is set for a post-pandemic boost.
The Wall Street firm's analysts have issued stock ratings in the diagnostics sector for the first time, picking four companies they say are innovative and can diversify revenues across multiple products, according to a research note published Wednesday.
Testing for coronavirus has become part of everyday life for many people — and it has meant the authorization process for such kits has sped up.
As a result, says Goldman, firms in the diagnostics sector are likely to come out of the pandemic "stronger and faster growing," boosted by the speedier approvals process for health tests as well as cheaper technology and more demand from an ageing population.
The bank's buy-rated picks are: