HALISTER1: Grifols Is Good Buy, Shares Have 20% Upside, Says Oddo & Cie

Grifols Is Good Buy, Shares Have 20% Upside, Says Oddo & Cie

(Bloomberg) -- Grifols laboratories are a unique opportunity in healthcare as world’s only pure player of significant size in plasma derivatives, Oddo & Cie analysts Sebastien Malafosse and Pierre Corby write in note.
  • Plasma derivatives -- proteins extracted from blood donors’ plasma for therapeutic use -- is a dynamic market relatively sheltered from price pressure
    • Treatments in plasma derivatives market combined represented global revenues of EU18b in 2016
  • Grifols is in good position, with 18% market share, to outperform sector over the next few years with EPS CAGR of 15% vs 12.7% for specialty pharma players
  • Co. should post annual sales growth of 5.1% over next 5 years
  • Initiates share coverage with a buy rating

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
GRF SM (Grifols SA)

People
Pierre Corby (Oddo & Cie)
Sebastien Malafosse (Oddo & Cie SCA)

Topics
Holding Increases

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