CSL’s FY17 full-year results beat the broker thanks to a margin lift on high-value products, strong plasma sales, more efficient operations and a stumble by competitors.
Morgans says expected second-half weakness should give way to a reinvestment year in 2018, and believes forecasts may be conservative.
CSL is upgraded to Add from Hold and the target price eases marginally from $140.20 to $138.40.
Sector: Pharmaceuticals & Biotechnology.
Target price is $138.40.Current Price is $125.27. Difference: $13.13 – (brackets indicate current price is over target). If CSL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).