CSL Share Price 'Most Attractive' in Uncertain Times, Says Fund Manager

2 min read | November 02, 2023 07:28 PM AEDT | By Team Kalkine Media

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The CSL Ltd (ASX:CSL) share price is standing out among ASX healthcare stocks during the current market rally. CSL shares closed at $234.98 and have since risen to $237.63, marking a 1.1% gain in line with the broader 1.2% increase in the ASX 200 at the same time. Jun Bei Liu, a fund manager at Tribeca Investment Partners, has expressed her confidence in the CSL share price, highlighting its potential to outperform over the long term. She cited CSL's impressive track record, having built a world-leading blood plasma franchise through strategic acquisitions and a focus on efficiency and robust sales and marketing capabilities over the last 25 years.

CSL operates in three distinct business segments: blood plasma, influenza vaccines, and injectable iron, all of which offer solid medium-term growth prospects, providing diversified and defensive earnings streams. In the face of economic uncertainties, rising interest rates, and geopolitical threats, investors are increasingly favoring defensive stocks. Liu believes that this shift will work in favor of the CSL share price, which has historically shown its attractiveness during periods of investor uncertainty. With new and competing therapies emerging in all three of its business segments, CSL appears to be in such a period now.

Liu also emphasized that CSL's strong management team has guided the company to double-digit earnings growth over the medium term, highlighting its continued position as a growth company. The company reported robust FY 2023 results, including a 31% YoY increase in revenue (in constant currency) to US$13.31 billion and a 20% YoY rise in net profit after tax before amortization (NPATA) to US$2.86 billion (in constant currency). These positive results contributed to a 3.7% increase in the CSL share price on the day of the announcement. Despite the challenges and competition across its three business segments, CSL remains well-prepared to navigate and sustain its growth, making it an appealing choice for investors in uncertain times.

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