UBS reviews the commercial opportunity for the company’s reconstituted high-density lipoprotein product. The product is currently in a phase 3 clinical trial with the final result expected in 2022.
While the mechanism of action has been established there is, to date, no definitive data demonstrating clinical benefits. Therefore, the broker does not include earnings from the product in forecasts.
Meanwhile, with weak first-half albumin revenue growth, UBS believes CSL Behring needs to demonstrate improved earnings growth and margin performance in the second half to support current multiples. Buy rating and $223 target maintained.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $223.00.Current Price is $210.53. Difference: $12.47 – (brackets indicate current price is over target). If CSL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
