Own CSL shares? Here’s what brokers are saying about its R&D pipeline

CSL Limited (ASX: CSL) shares are pushing higher on Monday.

At the time of writing, the biotherapeutics giant’s shares are up 0.5% to $276.85.

Why are CSL shares rising?

CSL shares are rising on Monday after brokers responded positively to the company’s research and development (R&D) update.

One of those brokers was Morgans, which has responded by retaining its add rating and $312.20 price target on the company’s shares.

Morgans was pleased with the update and notes that a decent proportion of the pipeline has the potential to become standard of care treatments. It commented:

Internal efforts and the Vifor acquisition have seen the R&D pipeline grow c70% with the majority late-stage programs. Management is optimistic of the future “conservatively” estimating at least 10 compounds (c20% of the total pipeline) having the potential to be standard of care for the targeted patient group.

Key catalysts include: potential approval and launch of the first-ever hemophilia B gene therapy EtranaDez; Phase 3 data for anti-FXIIa antibody garadacimab in HAE; and Phase 2 recruitment completion of CSL112 for reducing secondary heart attacks.

What else are brokers saying?

The team at Citi was equally positive and has retained its buy rating and $340.00 price target. Like Morgans, the broker has highlighted the CSL112 therapy as a key highlight. It stated:

CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3. Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.

Finally, Goldman Sachs responded by maintaining its neutral rating and $291.00 price target. Its analysts note that the garadacimab (CSL312) product has the potential to be a “pipeline in a product” thanks to multiple end use possibilities. The broker explained:

CSL312 is a humanised anti-factor XIIa monoclonal antibody in development for multiple indications including as a subcutaneous therapy for HAE, with the potential for administration every 4 weeks (vs. every 2-3 days for Haegarda). Given its early position in the coagulation cascade, there is also potential application in various other disorders (including fibrosis, cardiovascular and inflammatory indications).

The post Own CSL shares? Here’s what brokers are saying about its R&D pipeline appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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