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.


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