Latest news with #CSL
Perth Now
21 hours ago
- Business
- Perth Now
Banks, miners drag ASX lower
Gains in the healthcare sector were offset by falls in the big four banks and major miners, with the local market falling for its fourth consecutive trading day on Friday. The ASX 200 dropped 18.20 points or 0.21 per cent to 8,505.50 on a quiet day of trading. The broader All Ordinaries slipped 17.90 points or 0.20 per cent to 8,723.50. Australia's dollar traded down against the US dollar and is now buying 64.83 US cents. Five of the 11 sectors rose but falls in banks and mining shares dragged the market lower. NewsWire / Jeremy Piper Credit: News Corp Australia On a mixed day for investors, strong gains out of the utilities and healthcare sectors were offset by falls from the big banks and miners. CSL shares jumped 0.63 per cent to $240.21, Pro Medicus gained 1 per cent to $276.81 and ResMed added 1.40 per cent to $39.16 on a strong day for the healthcare sector. Commonwealth Bank fell from a record high close on Thursday, down 0.2 per cent to $182.53. National Australia Bank slipped 0.5 per cent to $38.91, while Westpac came off 1.1 per cent to $33.21 and ANZ dropped to 2.5 per cent to $28.39. It was a mixed day for the big miners, with BHP eking out a small gain up 0.22 per cent to $36.21, while Rio Tinto fell 1.33 per cent to $102.17 and Fortescue dropped 0.54 per cent to $14.69. Overall five of the 11 sectors closed higher despite the market falling. On a reversal of trade in recent days, the price of oil and gold fell after the White House said US President Donald Trump would decide on strikes on Iran 'within the next two weeks' alleviating fears of an immediate escalation in the Middle East crisis. The price of crude oil futures fell 2.9 per cent to $US76.50 a barrel on the news, while gold futures also dropped 1.4 per cent to $US3,362 an ounce. Healthcare shares are on the rise on an overall weak day of trading: NewsWire / Christian Gilles Credit: News Corp Australia AMP head of investment strategy and chief economist Shane Oliver said stocks remained at 'high risk' of a pullback as markets grappled with multiple economic concerns. 'Global and Australian shares have seen a strong rebound from their April lows – but they remain at high risk of a sharp near term pull back as the risk of an oil supply disruption flowing from the war with Iran is high and Trump's tariff threat is far from resolved,' he said. 'On the tariff front it is notable that the 9th July tariff deadline is rapidly approaching and no deals have been struck beyond that with the UK, with indications that some countries may end up with tariffs well above 10 per cent.' In company news, Pointsbet Holdings announced a temporary pause in trading. It comes as rival sports wagering company Betr announced a renewed takeover bid in what it is calling a superior proposal for Pointsbet compared to Japanese gaming giant Mixi. Web Travel shares are in the red down 0.44 per cent to $4.50 after announcing former Virgin Australia chief executive Paul Scurrah and JB Hi Fi director Melanie Wilson would be joining the board as independent non-executive directors.
News.com.au
21 hours ago
- Business
- News.com.au
ASX slip on banks and miners in Friday training
Gains in the healthcare sector were offset by falls in the big four banks and major miners, with the local market falling for its fourth consecutive trading day on Friday. The ASX 200 dropped 18.20 points or 0.21 per cent to 8,505.50 on a quiet day of trading. The broader All Ordinaries slipped 17.90 points or 0.20 per cent to 8,723.50. Australia's dollar traded down against the US dollar and is now buying 64.83 US cents. On a mixed day for investors, strong gains out of the utilities and healthcare sectors were offset by falls from the big banks and miners. CSL shares jumped 0.63 per cent to $240.21, Pro Medicus gained 1 per cent to $276.81 and ResMed added 1.40 per cent to $39.16 on a strong day for the healthcare sector. Commonwealth Bank fell from a record high close on Thursday, down 0.2 per cent to $182.53. National Australia Bank slipped 0.5 per cent to $38.91, while Westpac came off 1.1 per cent to $33.21 and ANZ dropped to 2.5 per cent to $28.39. It was a mixed day for the big miners, with BHP eking out a small gain up 0.22 per cent to $36.21, while Rio Tinto fell 1.33 per cent to $102.17 and Fortescue dropped 0.54 per cent to $14.69. Overall five of the 11 sectors closed higher despite the market falling. On a reversal of trade in recent days, the price of oil and gold fell after the White House said US President Donald Trump would decide on strikes on Iran 'within the next two weeks' alleviating fears of an immediate escalation in the Middle East crisis. The price of crude oil futures fell 2.9 per cent to $US76.50 a barrel on the news, while gold futures also dropped 1.4 per cent to $US3,362 an ounce. AMP head of investment strategy and chief economist Shane Oliver said stocks remained at 'high risk' of a pullback as markets grappled with multiple economic concerns. 'Global and Australian shares have seen a strong rebound from their April lows – but they remain at high risk of a sharp near term pull back as the risk of an oil supply disruption flowing from the war with Iran is high and Trump's tariff threat is far from resolved,' he said. 'On the tariff front it is notable that the 9th July tariff deadline is rapidly approaching and no deals have been struck beyond that with the UK, with indications that some countries may end up with tariffs well above 10 per cent.' In company news, Pointsbet Holdings announced a temporary pause in trading. It comes as rival sports wagering company Betr announced a renewed takeover bid in what it is calling a superior proposal for Pointsbet compared to Japanese gaming giant Mixi. Web Travel shares are in the red down 0.44 per cent to $4.50 after announcing former Virgin Australia chief executive Paul Scurrah and JB Hi Fi director Melanie Wilson would be joining the board as independent non-executive directors.
News.com.au
a day ago
- Business
- News.com.au
Scott Power: ASX health stocks fall in ‘lacklustre week'
ASX heath sector falls 1.1% over past five days The US FDA approves CSL's Andembry to prevent attacks of hereditary angioedema Clever Culture systems records its second consecutive quarter of positive cashflow operations Healthcare and life sciences expert Scott Power, who has been a senior analyst with Morgans Financial for 27 years, gives his take on the ASX healthcare sector for the week and his 'Powerplay' stock pick. The ASX healthcare sector has had what Morgans' senior healthcare analyst Scott Power described as a "lacklustre week". At lunchtime on Friday, the S&P/ASX 200 Health Care index (ASX:XHJ) was down 1.1% for the past five days, while the benchmark S&P/ASX 200 (ASX:XJO) fell 0.55% for the same period. Markets have been influenced by global economic and geopolitical concerns, particularly escalating tensions between Iran and Israel. And it seems US President Donald Trump has not backed down from tariffs on pharmaceutical imports. A United States Department of Commerce investigation is underway under Section 232 of the Trade Expansion Act of 1962 – a provision that allows the president to restrict imports if they are deemed a threat to national security. Returning from the G7 Summit in Canada Trump reportedly told media on Air Force One tariffs on the sector were coming. "We're going to be doing pharmaceuticals very soon," he said. "That's going to bring all the companies back into America... at least partially back in." Power said Trump's latest comments were adding further jitters to the sector. "Until we get clarity there's going to be volatility," he said. Power's Powerplay – CSL gets FDA approval for Andembry The ASX's largest healthcare stock CSL (ASX:CSL) has notched a milestone with the FDA approving its Andembry (garadacimab) to prevent attacks of hereditary angioedema (HAE). Affecting about one in 50,000 people CSL said HAE was the first and only treatment targeting factor XIIa for prophylactic use to provide sustained protection from attacks of HAE in adult and pediatric patients aged 12 years and older. The approval was based on a pivotal phase III (VANGUARD) trial and ongoing open-label extension study, showing Andembry reduced the median number of HAE attacks by more than 99% (mean 89.2%), compared to placebo. Andembry is also the only treatment to offer once-monthly dosing from the start for all patients and is administered via an autoinjector. The drug is already available in Australia, the UK, EU, Japan, Switzerland and UAE. CSL said Andembry will be launched "immediately", with availability through third-party specialty pharmacy network before the end of June. In a note to clients, Morgans' healthcare analyst Derek Jellinek wrote that while Andembry's US approval had taken longer than expected, with application filing in December '24, it's good to see the drug greenlit before the end of '25 "despite the ongoing tumultuous environment" at the US Food and Drug Administration at the agency. "We view Andembry's unique MOA (ie upstream inhibition of key pathways leading to HAE attacks, so broader applicability), favourable safety profile and convenient dosing (every 4 weeks via subcutaneous injection) as key differentiators," Jellinek wrote. While Andembry is expected to impact Berinert sales – CSL's treatment for acute HAE attacks – Jellinek believes the effect should be modest. He wrote Berinert's revenue was forecast to remain steady in FY25 at US$242 million, accounting for less than 2% of CSL's total revenue. Sales are projected to ease slightly to US$230m in FY26 and US$225 million in FY27. However, this is more than compensated by anticipated growth in Andembry sales, which are expected to reach US$120m in FY26 and increase to US$220m in FY27. Morgans has an add rating on CSL and 12-month target price of $329.26. Clever Culture Systems delivers clever Q3 FY25 result Clever Culture Systems (ASX:CC5) has achieved its second consecutive quarter of positive cashflow operations with $500,000 net cash inflow in Q3 FY25 and is on track to achieve break-even or better for H2 FY25. During the quarter Clever Culture continued to execute on its commercialisation strategy for its APAS Independence instruments in the pharmaceutical market, building on success with big pharma companies Astra Zeneca and Bristol Myers Squibb (BMS). The instruments use artificial intelligence and machine learning software to automate the imaging, analysis and interpretation of microbiology culture plates. Since launching the product in March 2024, Clever Culture said it had completed sales and received orders from pharmaceutical customers for 13 APAS instruments, representing ~$6 million in revenue with a pipeline of 40 qualified opportunities. Clever Culture finished Q3 FY25 with a cash position of $2.2m. "Other top 10 pharmaceutical companies are expected to engage with CC5 following the AstraZeneca and Bristol Myers Squibb success," Power said. Emvision awarded $5 million government grant EMVision Medical Devices (ASX:EMV) has been awarded a $5 million federal government grant to further development of its First Responder portable brain scanner. The funds are by way of an Australian government Industry Growth Program (IGP) Commercialisation and Growth Grant. First Responder is EMVision's second product and distinguishes between bleed and clot strokes at the scene and is designed to be used by ambulances and by paramedics. The device should shorten diagnosis time, a crucial element in the patient getting the right treatment. EMVision's first commercial device – the emu bedside brain scanner – is also designed to rapidly diagnose stroke at the point-of-care with a pivotal trial underway to supports US Food and Drug Administration (FDA) de novo (new device) clearance. Audeara hits record, Micro-X gets milestone payment boost In other news of the week, specialist in listening solutions for people with hearing challenges Audeara (ASX:AUA) has delivered record revenue exceeding $3.64 million for the 11 months to end of May FY25. Audeara reported revenue for the 11-month period was up 14% on FY24 total revenue and 25% on FY23, which the company said signalled underlying strength of its ongoing operations. The company expects additional growth to materialise in coming weeks based on strong June 2025 trading. And leader in cold cathode x-ray technology for health and security markets Micro-X (ASX:MX1) has received $2.3 million in milestone payments for two projects. MicroX achieved milestone three under its development agreement with US Advanced Research Projects Agency for Health (ARPA-H) and Department of Homeland Security (DHS) for a full body CT scanner, delivering $1.4 million. The company also achieved milestone two under a strategic partnership deal with Billion Prima for a baggage and parcel scanning unit due for completion in 2025, delivering $900,000. "We are pleased to continue to deliver strong progress on these key development contracts with ARPA-H, DHS, and Billion Prima respectively, which is a testament to our focus and timely delivery on key projects," Micro-X CEO Kingsley Hall said. "We are also well advanced with the final stages of our Head CT development as we prepare to enter human imaging trials." The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article. At Stockhead, we tell it like it is. While Clever Culture Systems, Audeara and EMVision are Stockhead advertisers, the companies did not sponsor this article.
Yahoo
a day ago
- Business
- Yahoo
Is There An Opportunity With CSL Limited's (ASX:CSL) 39% Undervaluation?
The projected fair value for CSL is AU$391 based on 2 Stage Free Cash Flow to Equity Current share price of AU$239 suggests CSL is potentially 39% undervalued Analyst price target for CSL is US$314 which is 20% below our fair value estimate How far off is CSL Limited (ASX:CSL) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$2.79b US$3.31b US$3.80b US$4.47b US$4.75b US$4.98b US$5.20b US$5.40b US$5.59b US$5.78b Growth Rate Estimate Source Analyst x7 Analyst x7 Analyst x7 Analyst x1 Analyst x1 Est @ 4.87% Est @ 4.29% Est @ 3.89% Est @ 3.61% Est @ 3.41% Present Value ($, Millions) Discounted @ 6.5% US$2.6k US$2.9k US$3.2k US$3.5k US$3.5k US$3.4k US$3.3k US$3.3k US$3.2k US$3.1k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$32b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.5%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$5.8b× (1 + 2.9%) ÷ (6.5%– 2.9%) = US$169b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$169b÷ ( 1 + 6.5%)10= US$90b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$122b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of AU$239, the company appears quite undervalued at a 39% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at CSL as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.5%, which is based on a levered beta of 0.813. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for CSL Strength Earnings growth over the past year exceeded its 5-year average. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings growth over the past year underperformed the Biotechs industry. Dividend is low compared to the top 25% of dividend payers in the Biotechs market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Good value based on P/E ratio and estimated fair value. Threat Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price sitting below the intrinsic value? For CSL, we've put together three relevant factors you should consider: Risks: Take risks, for example - CSL has 1 warning sign we think you should be aware of. Future Earnings: How does CSL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
3 days ago
- Business
- Business Insider
Jarden Reaffirms Their Buy Rating on CSL (CMXHF)
Jarden analyst Steven Wheen maintained a Buy rating on CSL (CMXHF – Research Report) yesterday and set a price target of A$317.61. The company's shares closed yesterday at $148.56. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Wheen is a 4-star analyst with an average return of 16.5% and a 53.26% success rate. Wheen covers the Healthcare sector, focusing on stocks such as CSL, Healius Limited, and Regis Healthcare Ltd.. Currently, the analyst consensus on CSL is a Strong Buy with an average price target of $203.87, implying a 37.23% upside from current levels. In a report released today, Morgan Stanley also maintained a Buy rating on the stock with a A$303.00 price target. The company has a one-year high of $215.00 and a one-year low of $137.40. Currently, CSL has an average volume of 1,418.
