CSL shares dip as Bell Potter cuts target price on lower vaccine earnings
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The news: Shares in pharmaceutical company CSL have slipped as an analyst at financial advisory firm Bell Potter dropped their target price on the stock in anticipation of lower earnings for US vaccine subsidiary Seqirus.
The numbers: At 12:21pm AEST, shares in CSL had fallen 0.6% to $238.9. A Bell Potter analyst note released on Friday dropped its target price on the stock from $335 to $305, although it retained its buy rating.
The context: The research note said that CSL’s US flu vaccine business, which makes up about 8% of group revenue and about 10% of group earnings, was expected to continue facing demand headwinds following several vaccine-related leadership changes in the US.
The Bell Potter note said “a more scrutinising regulatory environment stimulates ongoing news flow and contributes to broader uncertainty/vaccine fatigue in the general population”.
A reduced growth outlook for Seqiris is the “key driver for reductions in [net profit after tax before amortisation] forecast by 0%/-1%/-2% across FY25/26/27”.
Seqirus previously reported a decline in revenue and operating income for 1H25 following a decline in US vaccination rates in the 2024-25 flu season.
The source: Bell Potter research
