Credit Suisse believes the pandemic will promote a sustained increase in flu vaccination rates over the next 2-3 years.
The broker calculates industry volume growth of 10% in FY21 and Seqirus should gain share, with seasonal vaccine volume growth of 14% and revenue growth of 19%.
CSL is launching Fluad QIV in the US in FY21, in Europe in FY22, and a significant shift to this version is considered likely, aiding margin. Credit Suisse retains an Outperform rating and $333 target.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $333.00.Current Price is $287.24. Difference: $45.76 – (brackets indicate current price is over target). If CSL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).