CSL recently announced a collaboration with Terumo Blood and Cell Technologies to develop a new plasma collection platform for use in the company’s US collection centres. Macquarie sees this as supplementing an assumed Ig revenue recovery in FY23.
Assuming plasma yields per donation increase by around 10% (phased over 2 years), the broker calculates gross profit/gross margin upside of 13% and 2%. After various adjustments, overall EPS forecast revisions result in the target moving to $312 from $296.
The Outperform rating is maintained.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $312.00.Current Price is $274.45. Difference: $37.55 – (brackets indicate current price is over target). If CSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
