Credit Suisse believes it will be difficult for CSL to achieve the same IG market share gains it saw pre-covid, due to competition. This is evident as Grifols is acquiring more plasma and Takeda is increasing scale and becoming more efficient in the plasma collection market.
CSL relies upon growth from new plasma centres which take three years to ramp-up, explains the analyst. The broker forecasts CSL’s share of plasma collected by the three players will fall to 37-38% in 2020/21 from 42% in 2019, and not recover to 42% until 2025.
Nonetheless, Credit Suisse believes the company’s strategy to build greenfields centres will benefit in the long run, by having more efficien and higher-yielding centres. The $315 target and Neutral rating are unchanged.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $315.00.Current Price is $306.26. Difference: $8.74 – (brackets indicate current price is over target). If CSL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
