CSL: Quality on sale

About the author:

Dr Derek Jellinek
Author name:
By Dr Derek Jellinek
Job title:
Senior Analyst
Date posted:
15 March 2021, 3:10 PM
Sectors Covered:
Healthcare

  • Multiple headwinds, both intrinsic and exogenous, have seen shares come under pressure for the last year and further weaken over the past quarter.
  • We believe plasma collection remains the main concern, with ongoing uncertainty
    on recovery timing, but model conservatively as we continue to view the likelihood of a more protracted recovery than the market is anticipating.
  • We see upside in Seqirus, on the potential for a bad northern hemisphere flu season, given increased susceptibility in the population.
  • While we make no changes to our estimates or PT, we believe share weakness offers an opportunity to buy a high-quality business at a discount. Move to an Add recommendation.

Watch

No changes to estimates; risk/reward attractive

While we see potential risk to consensus estimates, share price weakness places multiples at more attractive level regardless.

With no structural concerns and technicals supportive, we believe the risk/reward is more attractive and move to an Add recommendation.

Further analysis

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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.

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