CSL – 250% Gain

CSL has now shifted to sell conditions after being in our model portfolios since May 2015. With dividends, the stock has increased by 250%.

CSL has raised its full year profit guidance to between 3% – 8%, despite warnings of higher plasma costs. The lower end of guidance had previously been zero.

Full-year FY21 is now expected to be between $2.2bn and $2.26bn. We continue to see reliable earnings growth for CSL, however, the 40x multiple may prove to be too rich in the short-term.

CSL – Buy

CSL is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

CSL & the Australian Government signed a Heads of Agreement to supply 51mn doses of the University of Queensland’s COVID-19 vaccine.

CSL & AstraZeneca also signed a Heads of Agreement for manufacture & distribution of 30mn doses of AZN’s COVID-19 vaccine (AZD1222).

We expect EPS to increase by 8 – 10% in FY21 and FY22. This supports a forward dividend yield of 1.1%.

Buy CSL within the $265 – $280 support range.