A tight market in plasma presents an opportunity in Europe, Credit Suisse notes. The broker suspects the US political environment, where CSL generates 55% of its immunoglobulin revenue, is likely to limit any significant price rises.
However, with prices more than -20% lower in Europe and the rest of the world the broker believes prices are likely to converge. Outperform rating maintained. Target rises to $305 from $249.
Credit Suisse believes the valuation is justified given the strong market position in a niche industry that has robust fundamentals.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $305.00.Current Price is $285.43. Difference: $19.57 – (brackets indicate current price is over target). If CSL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
