UBS has upgraded CSL (ASX:CSL) to Buy from Neutral, citing higher profit growth forecasts for FY14

Livewire Equities

UBS has upgraded CSL (ASX:CSL) to Buy from Neutral, citing higher profit growth forecasts for FY14. According to the broker, CSL has forgone any 2013 price increase in the US and so the company's Privigen IVIG is currently priced 9% lower than its US peers but higher than the rest of the world. UBS estimates the company is planning around 12% FY14 volume growth, however, if it grows US volumes faster, a 40% price arbitrage can be achieved. As such, the target price for CSL has been raised from $70 to $75 (current price $64.53) with an expected return of 16%. Based on the last closing share price, the stock's estimated price-to-earnings ratio is 21.12.


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