Leading blood plasma and vaccine manufacturer CSL (ASX:CSL) has been tagged as a ‘buy’ by major brokerage firms following its financial outcomes for the fiscal year 2024 (FY24). The company, renowned for its growth trajectory, recently disclosed its revenue and earnings, alongside providing forward-looking guidance that stands to shape investor expectations.
CSL reported a robust revenue of $14.74 billion, marking an 11% increase year over year and surpassing consensus estimates set at $14.65 billion. In terms of earnings, CSL saw its EBIT reach $4.28 billion, which was marginally above the forecast consensus of $4.26 billion. Despite strong revenue and earnings, CSL’s net profit guidance of $3.2-$3.3 billion in constant currency terms settled slightly below the consensus estimate of $3.38 billion. Nonetheless, the company expects to sustain revenue growth of 5-7% in the coming periods.
A key highlight for CSL’s future is its projected growth drivers. Behring, focused on immunology, hematology, cardiovascular and metabolic, respiratory, and transplant therapeutics, is anticipated to lead the charge. This segment, alongside the specialty products division, are pegged to be the primary contributors to CSL’s growth. On the other end of the spectrum, Seqirus, CSL’s branch specialising in flu vaccines, could encounter headwinds due to a dip in demand for influenza vaccinations.
Broker consensus has woven a positive narrative for CSL, with an average price target a shade above $325.
The overall sentiment towards CSL’s prospects remains upbeat. Brokers express confidence in the firm’s strategic execution and its long-term horizon. While the presented net profit guidance may have been marginally shy of expectations, the projected revenue growth and CSL’s robust pipeline in Behring and Specialty Products serve as reassurance for both current and potential shareholders.
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The FY24 financial results from CSL reinforce the company’s standing as a preferential pick within the biotechnology and vaccine leaderboards. The brokerage community’s seal of approval in the form of a buy recommendation suggests that CSL’s growth story is well recognized and expected to continue, underpinned by concrete performance figures and a forward-looking strategic approach.
Investors are encouraged to look at the broader context of CSL’s achievements and propositions, where short-term numerical discrepancies are overshadowed by the overarching growth narrative and the firm’s stronghold in market-leading biomedical innovations.
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