ASX Reporting season preview: CSL, Cochlear and ResMed

Morgans views on ASX 200 healthcare companies heading into August reporting season.

CSL: Behring to struggle

Morgans forecasts CSL (ASX: CSL) to report underlying profits of US$2.18bn in FY22, down -8.2% compared to a year ago. The profit decline includes US$90-100m in costs related to its Vifor Pharma acquisition.

CSL Behring and Seqirus are both expected to be hit by unfavourable seasonality and challenging plasma collection conditions.

"Seqirus influenza vaccines supported first-half results, but an 80/20 half-half split is less beneficial despite covid pandemic-driven demand," the analysts said.

Likewise, Behring is expected to struggle as "tight plasma supply and higher costs should constrain plasma-based products."

Still, Morgans sees the potential for FY22 earnings to surprise to the upside. Noting that plasma collection are expected to "continue to improve, with numerous initiatives (e.g. enhanced marketing; new technologies; better donor programs; 18 new collection centres opened)".

The broker is Add rated with a $327.63 target price.

CSL 12-month price chart

Cochlear: At the mercy of covid

Morgans believes a full recovery from covid-related disruptions still has time to play out and sits below consensus in FY22.

"We continue to expect varied trading conditions, with emerging market growth outpacing that seen in developed markets," the analysts said.

"The growth trajectory remains at the mercy of covid impacts (e.g. region specific elective surgery restrictions and hospital staffing shortages) and constrained operating theaters," the broker warned.

FY22 is expected to deliver a massive rebound in underlying net profits, up 134.4% to $272.7m. Sales are forecast to creep up 7.9% to $1.62bn.

The broker is Add rated with a $244.46 target price.

Cochlear 12-month share price chart

ResMed: Semiconductor shortages weigh

"The semiconductor supply shortage has crimped growth, shaving US$100m of incremental revenue from Philips' device recall on supplier decommits and enacted force majeure," said Morgans analyst Dr Derek Jellinek.

Still, the broker expects strong device/mask growth and ongoing gains from rival Philips' product recall. FY22 sales are forecast to jump 12.1% to US$3.58bn and underlying profits are expected to rise 7.6% to US$839.7m.

The broker is Add rated with a $37.95 target price.

ResMed 12-month share price chart