Result of the week: CSL Limited

Hugh Dive

In our opinion, the result of the week was biotherapeutics company CSL’s half year results. Whilst the headline numbers were pre-announced in January, the granular details provided the market with greater confidence that CSL’s growth story will continue to deliver in the medium term.

Key highlights for us was the +18% growth in plasma products and that the flu vaccine business is on track to break even in 2018. CSL’s competitors have entered 2017 with supply issues, which normally will take 2-3 years to rectify, which should afford CSL 2-3 years of solid price increases.

Less than a month ago, it was trading below $100 and whilst it has rallied on the back of profit upgrade in late January and the results this week, this is one growth stock for investors to keep on a watch list if it drifts down over the course of the year as it has in the past few years.


Hugh Dive

Hugh is the Chief Investment Officer at Atlas Funds Management, a boutique fund manager focusing on capital protection and consistent income . Atlas have two funds; the Atlas High Income Property Fund ASX:AFM01 & the Maxim Atlas Core Equity Portfolio

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ASX:CSL

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