Jefferies sees CSL's China albumin hit as short-term; keeps PT unchanged

Csl

08/12/2025 19:20

** Jefferies in a note analysed the impact of China's measures on albumin on Australia's CSL Ltd CSL.AX

** Albumin is used to replace lost fluids and restore blood volume in the human body

** Brokerage keeps price target unchanged for the biotech major at A$237; maintains "buy" rating

** Says cost containment in China weighing on albumin demand, mainly in H1 FY26, but sees rebound from H2 FY26

** Cost containment measures affecting albumin demand include reimbursement limits, centralized procurement, and pricing caps; CSL to offset via differentiated pricing and retail push

** Estimates albumin penetration in Chinese hospitals is only about 15%, meaning there's still significant room for growth over time

** Jefferies believe majority of CSL operates in a rational, underpenetrated environment

** 12 of 16 analysts rate the stock "buy" or higher, four "hold"; their median PT is A$237, according to data compiled by LSEG

** Stock has fallen 34.1% this year, as of last close

 (Reporting by Roshan Thomas in Bengaluru)

 ((Roshan.Thomas@thomsonreuters.com;))