CSL, Resmed Are Morgan Stanley's Australia Healthcare Picks in the Tariff Era -- Market Talk

Dow Jones
15 Apr

0351 GMT - Biopharmaceutical company CSL and medical equipment firm Resmed have the best combination of attractive valuation and low tariff impact among Australian healthcare stocks, suggests Morgan Stanley equity analyst David L. Bailey. He estimates that CSL would need to raise prices by 1% and Resmed would need to raise prices by 2%-3% to offset the earnings impact from tariffs. But given their solid earnings per share growth, low earnings risk and valuation appeal, he says these companies are the "most favorably positioned" among peers. One word of caution--pharmaceuticals are currently excluded from reciprocal tariffs, but Trump has signaled he wants to put tariffs on that sector soon, which could impact CSL. (mike.cherney@wsj.com; @Mike_Cherney)

 

(END) Dow Jones Newswires

April 14, 2025 23:51 ET (03:51 GMT)

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