CSL shares rally as analysts sees 'room for optimism'
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The news: Citi has reiterated its 'buy' rating on biotech giant CSL, sending shares higher in morning trade.
The numbers: CSL shares were up 2.5% to $203.29 at 11:30am AEST. The stock is down 26% since its shock restructure announcement last month.
Citi reiterated its 'buy' rating but slashed its target price from $300 to $265.
The context: Analyst Laura Sutcliffe said "there is room for optimism" if the company can convince investors of better-than-consensus sales growth for its Seqirus business and a credible pipeline rebuild at its November capital markets day.
CSL announced last month that it plans to spin off its under pressure vaccines business Seqirus as a separate ASX listing, and to eliminate 3,000 jobs, reduce its plasma centres in the US and cut $550 million in annual costs.
The source: Citi research
