Credit Suisse observes the first half result was affected by soft albumin and haemophilia product sales. The broker suspects, with no near-term product launches and potentially softer growth in key specialties, there are questions about the company’s ability to generate sustainable margins.
The need to grow plasma volumes in line with immunoglobulin demand will limit the degree of margin upside, in the broker’s view. Neutral rating maintained. Target is reduced to $192 from $200.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $192.00.Current Price is $197.86. Difference: ($5.86) – (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).