CSL Shares

Submitted by Craig Strzelecki on 18 September, 2007 - 12:37

CSL has an unchanged Buy stock recommendation and a share price target of $108.70 from Australian stock analyst UBS. They rate the US IVIG supply as 'marginally adequate'; but short globally: Their FY07 survey coincides with wide ranging global industry meetings which indicate better IVIG availability in the US market relative to the past 12-24mths; industry data suggests distribution 2HFY07 is up 3.7% on pcp. But, supply has not yet returned to 'adequate' levels - measured as 5 weeks supply; any 'hiccup' still spells shortages. Globally, EU remains short & ROW is sporadic at best. US IVIG prices expected to grow c.5% over next 12mths: The analysts' Sep-07 qtr pricing survey shows c.2% US IVIG price gains on consecutive quarters, but up c.10% on pcp for weighted average pricing. CSL has booked the fastest growth, up c.6% on consecutive qtrs to US$52/g; but off the lowest base. Some concentrations of Albumin remains in tight supply & price gains: Albumin at $32/vial (or $2.56/g) is up 14% on pcp; industry expects this to reach c.US$40/vial over the next 12-24mths. Awareness of the SAFE study is very low. Supply gains are consistent with UBSe which show some convergence with demand; they expect a comprehensive supply/demand model will be more critical to sector outlook going forward. There is risk of 'lumpiness' in the market as existing US collection centres gain final approval. But globally, with demand growth put at 7-10%, we continue to rate demand ahead of supply out to end CY10. Their price target is based on FY09 NAV estimate and a DCF analysis of future growth. Read previous CSL shares recommendations.

CSL Limited is listed on the Australian Stock Exchange (ASX) under stock code CSL. You can view their investor website here. CSL was listed on the ASX on 8 June, 1994. Elizabeth Alexander is the chairman for CSL and Brian A McNamee the CEO. This company is a global, specialty biopharmaceutical company that develops, manufactures and markets products to treat and prevent serious human medical conditions. They are involved in the development, manufacturing and marketing of pharmaceutical and diagnostic products, cell culture media and human plasma fractions. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade CSL.