Stockbroking | Wealth Management | Corporate Advice

x

Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

Blog

CSL upgraded to Add

Derek Jellinek

CSL Limited's FY17 underlying results came in above guidance, supported via solid core plasma sales, with margins up on higher value products and efficiencies.

Above-market growth in core Ig and Specialty segments, helped by 1H competitor stumbles, along with strong uptake of haemophilia B product Idelvion and an on-track turnaround Seqirus vaccine division, all underpinned the strength.

Investment view

Despite second half weakness (as we expected) and FY18 looking like a reinvestment year (as we also expected), it appears more than captured in the outlook, which may ultimately prove conservative given CSL's market leading breadth, diversity and multiple new product launches.

Our FY18-20 NPAT estimates decline up to 1.6%, mainly on higher opex and interest expense. However, with >10% total shareholder return, we upgrade to an Add rating and continue to view CSL as a core holding.

More information

Morgans clients can login to view our detailed report and share price target for CSL Limited. Alternatively, please contact your nearest Morgans office for access.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.