Treasure Chest | 1:07 PM
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is on CSL.
By Greg Peel
Whose Idea Is It?
Morgans
The subject:
Morgans believes CSL ((CSL)) shares are materially undervalued.
More info:
While the threat of US tariffs and risk of drug-pricing reform under the Most Favoured Nation executive order and US policy changes under Health Secretary Robert F. Kennedy Jr. have negatively impacted investor sentiment across the global healthcare sector, Morgans believes current trading levels for CSL shares are significantly below fair value, pricing Australia's largest biotech as less than a single-division company, with the main Behring division alone justifying a higher valuation and with no value assigned to either Seqirus or Vifor.
Americans pay the highest prices for drugs by a margin to other developed nations, even if developed and produced in the US, because the US has no system equivalent to Australia's Pharmaceutical Benefits Scheme, which bulk-buys drugs on behalf of Australians and is thus able to distribute at a lower price.
This irks US president Trump, who sees the PBS and equivalent systems as a trade barrier worthy of a 200% tariff, but the threat is from TACO Trump.
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