UBS has re-modelled earnings drivers for CSL and transferred lead analyst coverage. The broker shifts to DCF-based valuation methodology. A three-year compound growth rate for earnings per share of 16% is forecast.
The valuation implies a premium to the company’s historical average relative to the market but UBS believes current plasma industry conditions are favourable. Rating is upgraded to Buy from Neutral. Target is raised to $175 from $155.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $175.00.Current Price is $156.00. Difference: $19.00 – (brackets indicate current price is over target). If CSL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).