CSL - UBS rates the stock as Buy
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There appears to be some confusion about the real rate of growth in the US plasma market, with UBS analysts pointing out there is very little plasma available on spot market with contracted volumes fully allocated.
In addition, the analysts note Shire in the USA has communicated it will pursue a less capital intense 'brand & price' strategy, rather than resume a volume based plasma strategy. This, the analysts point out, translates into long term structural advantage to the likes of CSL and Grifols.
All in all, it appears "tight supply, modest price gains" best summarises the situation for plasma fractionating at the moment. Buy rating and $145 price target retained.
Sector: Pharmaceuticals & Biotechnology.
Target price is $145.00.Current Price is $132.46. Difference: $12.54 - (brackets indicate current price is over target). If CSL meets the UBS target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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