Among the popular Australian stocks, biotechnology company CSL Ltd. (AU:CSL) has earned an overall rating of Strong Buy from analysts. After the company released its first-half results for FY24 last month, various analysts confirmed their Buy rating on the stock while expressing confidence in its post-COVID financial recovery.
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Identifying a promising investment amid a vast array of stocks can be daunting. TipRanks’ analyst recommendations, including Hold, Buy, and Sell reviews by analysts, serve as valuable guidance in making informed decisions when selecting stocks.
CSL is a global biotechnology company that manufactures and sells biopharmaceuticals and related products. The company derives a significant portion of its profits from operations in the U.S.
Let’s take a look at more details.
Recent Ratings
Earlier this month, J.P. Morgan analyst David Low confirmed his Buy rating on CSL stock, predicting an upside of over 13%.
Meanwhile, Jefferies analyst David Stanton has the highest price target of AU$338.50 on CSL stock, which is 18% above the current trading levels. The analyst expects the company’s subsidiary CSL Vifor to face challenges due to the introduction of a generic version of Venofer (iron sucrose injection) by its competitor Viatris (NASDAQ:VTRS) in the U.S. in the second half of 2024.
According to Jefferies, CSL Vifor is expected to experience a decrease in the distributor margin on sales of the active pharma ingredient for Venofer in the U.S. compared to the margin on sales of the product in the European Union. Accordingly, Stanton projects a 0.8% decline in the company’s FY26 EPS (earnings per share). Nonetheless, he maintained a Buy rating on the stock.
CSL Vifor recorded $1.01 billion in revenue in the first half of FY24. However, the company remains cautious over the expectations for CSL Vifor in the short term as it adapts to the dynamics of an evolving iron market.
Insights from H1 FY24 Results
In the first half of FY24, CSL witnessed a significant 11% surge in total revenues to $8.05 billion on a constant currency basis. Additionally, NPATA (net profit after tax before amortization) grew by 13% year-over-year to $2.06 billion (constant currency).
The company reaffirmed its forecast for double-digit earnings growth in the medium term. NPATA is expected to range from approximately $2.9 billion to $3 billion in FY24 at constant currency, representing a growth of 13% to 17%.
Is CSL a Buy, Sell, or Hold?
According to TipRanks’ rating consensus, CSL stock has a Strong Buy rating based on seven Buy and two Hold recommendations. The CSL share price target is AU$308.61, which shows a growth of 8% at the current price level.
Year-to-date, CSL shares are trading down by 0.68%.
