CSL – shareholders get another injection


CSL $211.80 as at 15/08/2018


Biotech company CSL once again impressed investors at the full year result this morning, showing another solid year of growth with net profit rising 29%, lifting the dividend 30%. New launches as well as now fully integrated acquisitions contributed to the blood products and vaccines businesses result. Raising questions such as, is CSL a buy?

The market didn’t seem to mind a slightly soft guidance with the company known for under promising the year ahead. For the financial year just gone, CSL upgraded guidance twice – the last in march – and still beat the updated numbers. Consensus NPAT was looking for $1,969m in FY19, while the company guided to $1,880 – $1950m, about a 2.7% miss.

CSL Chart

Is CSL a buy now?

It has run strongly, and currency tailwinds along with improving business conditions will continue to help CSL. It does trade on a high multiple which is why we remain cautious, looking for a pullback towards $180 to be more interested.