The Interest Rate Vomit Trade Has Happened, page-105

CSL to have small positive impact from reversal of Mexican plasma donor ban in U.S.: Citi

21 Sep 2022 08:33

• * Analysts at Citi say Australia's biotech giant CSL Ltd would see a small positive impact from temporary overturning of Mexican plasma donor ban in the United States
• * Brokerage notes CSL's announcement about the U.S.
  District Court issuing a preliminary injunction preventing the
  U.S. Customs and Border Protection from continuing to enforce its ban on plasma donations by Mexican nationals
• * Brokerage says the reversal of ban is a positive for the industry which has just recently seen plasma collections reach pre-pandemic levels
• * Citi (A$340, buy) says for CSL, the impact will be positive, but relatively small given CSL has only about 13 centres near the border, or about 4% of its U.S. total of 312 centres
• * Brokerage says CSL would focus on "optimizing" the collection from existing centres in FY23 but costs will remain elevated due to labor shortage
• * Citi expect U.S. volumes to decline about 10% in FY23
• * Brokerage also expects CSL to provide revised earnings guidance including Vifor acquisition at its AGM and Investor Day in October
• * 12 of 16 analysts rate the stock "buy" or higher, and four "hold"; their median PT is A$323.00 - Refinitiv data
• * As of last close, stock down 2.7% this year
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