With the pandemic receding, Morgan Stanley assumes immunoglobulin (Ig) volume will recover to almost 6% below its pre pandemic forecasts driving 30% earnings growth in FY23.

The broker notes risk to the base case remains shortage-induced demand management strategies like managing patients via priority of indication and use of alternative therapies. If such strategies are effective, Morgan Stanley sees its base case at risk as then supply may exceed demand.

CSLhas underperformed the ASX200 year to date by circa -12% and for the company to outperform, plasma collection needs to recover with minimal disruption of demand recovery.

Equal-weight rating with the target dropping to $275 from $276. Industry view: In-Line.

Sector: Pharmaceuticals, Biotechnology & Life Sciences.

Target price is $275.00.Current Price is $268.30. Difference: $6.70 - (brackets indicate current price is over target). If CSL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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