After reviewing the drivers of 14% per annum gross profit growth during FY2016-20, Macquarie assumes a recovery for Ig though potential competitive risks in relation to key Specialty Products with less substantial incremental contributions from Seqirus.
Thus, the broker calculates more modest gross profit growth to FY23 of around 10% per annum. After minor adjustments to forecasts, the Neutral rating is maintained while the price target falls to $288 from $293.
Within CSL Behring, Ig and Specialty products were seen by Macquarie as the key drivers of the prior 14% growth rate.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $288.00.
