Intelligent Investor

CSL

By · 11 Sep 2012
By ·
11 Sep 2012 · 2 min read
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Recommendation

CSL Limited - CSL
Buy
below 35.00
Hold
up to 50.00
Sell
above 50.00
Buy Hold Sell Meter
HOLD at $44.85
Current price
$269.49 at 16:40 (19 April 2024)

Price at review
$44.85 at (11 September 2012)

Max Portfolio Weighting
4%

Business Risk
Low

Share Price Risk
Medium
All Prices are in AUD ($)

CSL recently announced its biotherapies division has been awarded a contract to supply the US government with pre-pandemic and pandemic influenza vaccines. This contract could be worth US$1.5bn if the US takes up its full allocation. This is yet another piece of positive news following on from CSL’s stellar full year results released in August (see CSL: Result 2012 from 23 Aug 12 (Hold – $42.08)).

This company is one of the few businesses that can grow earnings regardless of the economic environment and shareholders shouldn’t consider selling unless they’re offered a very rich price. And with CSL’s share price nearing our ‘Take Part Profits’ price of $45 per share we are increasing our recommendation guide prices to reflect the progress made over the past year, the continued growth opportunities for the business and its extremely high underlying quality. However, if you purchased a significant stake in CSL at much lower prices and it now makes up a large proportion of your portfolio you may consider trimming your holding to within the portfolio limit. The share price has increased 7% since 23 Aug 12 and we’re happy to HOLD.

Note: The Growth portfolio owns shares in CSL.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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