BioSensors: OCBC maintains Buy but cuts TP slightly to $1.92 from $1.95. House believe that concerns over imminent stent price cuts by the China government have manifested into Biosensors share price recently. Such fears have been overdone, in house opinion, as strong vol increase is expected to buffer the impact of ASP declines.
China remains a high-growth market for drug-eluting stents (DES), and house positive on BIG’s move to enhance its presence there. Besides organic growth, also expect M&A activities to drive its earnings traction moving forward. While new DES launches by competitors will likely have some negative impact on BIG, see its first mover advantage and strong positive clinical data as its key competitive advantage.
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