The news: Goldman Sachs has initiated coverage on medical equipment maker ResMed and biotech giant CSL with a ‘buy’ ratings as analysts see a strong upside for stock prices of both companies.
The numbers: The brokerage has a 12-month price target of $48.90 on ResMed, which last closed at $37.54.
The analyst have placed a price target of $325.40 on CSL, which last closed at $275.61.
The context: Goldman said its positive outlook on ResMed was underpinned by roust patient growth due to growing awareness of obstructive sleep apnea (OSA), market share gains in OSA masks and margin expansion driven by product mix and solid cost management.
“Our forecasts for FY25/26/27 EPS are higher than consensus largely driven by higher masks and ROW devices revenue,” the analysts said in a note.
They said CSL had faced numerous challenges over the last five years, which led to some structural changes in the business, but the company’s proactive investments in its core immunoglobulin (IG) franchise and new product launches in the Behring portfolio are set to increase returns in the new operating environment.
The analysts listed double digit IG growth, strong gross margins on Behring plasma collection costs, and rebound in Seqirus growth from depressed US influenza vaccination rates as factors driving their ‘buy’ rating on the stock.
The source: Goldman Sachs research
Source: capitalbrief.com