Goldman Sachs: Time To Buy Carlisle Companies And Grifols

In a report published Monday, Goldman Sachs analysts reviewed the Global Medical Technology: Medical Supplies market, expressing confidence in the ability of the global plasma market to grow its volumes at 6-8 percent in the medium term. The analysts believe that the increased penetration of and additional uptake in developing countries is likely to drive this growth. The industry is expected to witness robust growth for another 2-3 years before pricing is impacted. The analysts maintained their Buy rating on

and

, given both companies' "strong relative growth outlooks." These companies make up two of the three largest players in the US/EU markets, which currently have significant barriers to entry, apart from "long lead times for building incremental capacity, and barriers to obtaining the raw material – as maintaining supply/demand balance in the medium term," the analysts said. Although there might be short term pricing headwinds, including a modest weakening in US IG prices, these are more likely to affect smaller players, while Carlisle Companies and Grifols are expected to be able to better absorb pricing declines. The analysts believe that Carlisle Companies and Grifols offer the best ways to gain exposure to the plasma market.