Sirtex 1H14 earnings were in line with Morgans forecasts, with modest dose sales held up by FX, and ongoing brand-building activities limiting full translation...

Sirtex 1H14 earnings were in line with Morgans forecasts, with modest dose sales held up by FX, and ongoing brand-building activities limiting full translation into operating profit and bottom-line gains. Morgans believe near-term dose sales should be solid, the outlook over the medium/longer term remains less certain as it is contingent on favourable clinical results and commercial success, where we continue to express caution. Morgans make only modest changes to FY14-16 NPAT estimates, with our blended SOTP/risk-adjusted DCF-based target price increasing to A$12.17. (SRX, Hold, Price Target A$12.17)