UBS reviews implications for plasma collection with the rise in coronavirus cases in certain US states. The broker expects a decline of -20% on average from April-September 2020 and then no growth until March 2021.
However, there are several items that should provide some mitigation and underpin earnings growth in FY21. Immunoglobulin price growth assumptions are increased to 8% in the second half and albumin sales in China are expected to normalise.
Buy rating maintained. Target is reduced to $331 from $335.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $331.00.Current Price is $280.75. Difference: $50.25 – (brackets indicate current price is over target). If CSL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
