With underperformance in the shares, no structural concerns and technicals being supportive, Morgans believes the risk/reward is more attractive for CSL and upgrades the rating to Add from Hold.
While identifying plasma collection as the main concern, the broker sees upside in Seqirus, on the potential for a bad northern hemisphere flu season. The recent flu respite may leave the population more vulnerable to more severe flu outbreaks over the medium/long term.
Morgans makes no changes to forecasts or the price target of $301.1.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $301.10.Current Price is $252.21. Difference: $48.89 – (brackets indicate current price is over target). If CSL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
