CSL Shares Edge Higher on Half-Year Results, Targets 10-13% NPATA Growth

2 min read | February 11, 2025 11:19 AM AEDT | By Team Kalkine Media

Revenue and Profit Growth Falls Short of Estimates

For the six months ending 31 December, CSL reported a 5% increase in constant currency revenue to US$8.48 billion and a 7% rise in NPAT to US$2.04 billion. Additionally, net profit after tax and amortization (NPATA) grew 5% to US$2.11 billion, but this figure was 4.1% below analyst estimates.

Despite the minor shortfall, CSL remains optimistic, reaffirming its full-year guidance. The company expects 5%–7% revenue growth in constant currency and has maintained its FY25 NPATA guidance of US$3.2 billion to US$3.3 billion, representing a 10%–13% year-on-year increase.

Looking beyond FY25, CSL is confident in its ability to sustain double-digit earnings growth over the medium term, citing robust demand for its core immunoglobulin (Ig) therapies and the performance of new product launches under CSL Vifor.

Analyst Reaction: Goldman Sachs Maintains ‘Buy’ Rating

Goldman Sachs analysts provided a mixed review of CSL’s performance. While they noted headline revenue and profit misses, they were encouraged by stronger-than-expected results from CSL Behring, the company's largest segment.

Goldman highlighted that:

Gross profit from CSL Behring was 1% ahead of expectations, thanks to improved cost efficiencies in plasma collection.
Seqirus, CSL’s influenza vaccine unit, underperformed, impacted by broader industry pressures, with competitors Sanofi and GSK also reporting revenue declines.
CSL Vifor exceeded expectations, with growth in iron sales and successful new product launches (TAVNEOS and FILSPARI).

Despite challenges in certain segments, Goldman Sachs reaffirmed its Buy rating on CSL shares, setting a price target of $325.40, significantly above its current market price.

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