A woman prepares a swab test at home.
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Goldman Sachs has started to cover a fast-growing, high-margin health technology sector that it says will get a boost after the pandemic.
The Wall Street firm’s analysts have released diagnostic stock ratings for the first time and have selected four companies they think are innovative and can diversify revenues across multiple products, according to a research note released on Wednesday.
Testing for the coronavirus has become part of everyday life for many people – and has resulted in the approval process for such kits accelerating.
As a result, Goldman said, diagnostics companies are likely to emerge “stronger and faster growing” from the pandemic, fueled by faster health testing approval processes, cheaper technology and higher demand from an aging population.
The bank’s buy recommendations are: