OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Macquarie rates CGF as Neutral

Macquarie assesses, at current valuations, the capital returns and offshore growth opportunity are priced in for Challenger, limiting the upside in the short term.

The broker points out the company's annuity spreads were flat in the first quarter, after increasing four basis points in the prior quarter. EPS estimates are reduced by -6.9% for FY27. Target falls to $9.60 from $10.20. Neutral rating retained.

Citi rates CSL as Neutral

Management at CSL has decided to transition all US plasma collection centres to Haemonetics' NexSys PCS system by the end of 2027.

The move follows earlier trials of the Haemonetics system, the analysts note. It represents another change in plasma collection technology after CSL had spent several years rolling out Terumo's Rika platform.

Commentary adds Rika delivered genuine benefits, including improved yield, shorter bed times and reduced no-return periods after failed donations. Via the transition, CSL is now seeking a further improvement in plasma yield from the Haemonetics system.

Citi retains its Neutral rating and leaves its forecasts and $180 target unchanged.

Bell Potter rates MSB as Buy

Australian biotech has endured a difficult 12 months, with several randomised clinical trials failing to meet their endpoints. Bell Potter believes this period has undermined investor confidence and contributed to recent weakness in Mesoblast's share price.

Highlighting several potentially significant clinical catalysts over the coming year, the analysts retain their Buy rating and $4.45 target for the company.

Further clinical progress is expected to narrow what Bell Potter sees as a persistent information gap amongst Australian institutions.

The interim readout from the adult graft-versus-host disease study is due in the March quarter 2027 and headline data from the chronic lower back pain trial by around mid-2027.

The broker's sum-of-the-parts valuation for Mesoblast's three assets Ryoncil, Rexlemestrocel and Revascor ranges from $5.83-$15.51.