Australian earnings preview – CSL

Australia

Full Year:

CSL Limited (CSL) is Australia’s largest drug maker, one of the world’s largest biotech companies and a leader in flu treatments and plasma protein therapies. It reports its full-year numbers on the 19th of August.

CSL’s plasma collection operations have continued to operate as normal through the pandemic, and the company is working on one of the more than 100 Covid-19 vaccines currently in development. It is also working on a blood plasma treatment for patients who experience serious complications from COVID-19.

CSL stands to benefit by expanding its flu vaccine business and also from strong demand for its immunoglobulin products, which are based on antibodies produced by blood plasma due to supply shortages at competitors Grifols and Takeda.

CSL reaffirmed its already upgraded FY20 profit guidance in April and expects $2.11 billion to $2.17 billion in net profit with an estimated EPS of 600 cents per share.

Technically, the decline from the $342.75 high of February appear to be a correction after a stunning multi-year rally. Once the correction is complete, the uptrend would be expected to resume.

As such, we would consider buying a dip into the support offered by the trend channel and the March low, $250/240 area. Keeping in mind, a more aggressive entry may be required if the share price makes a sustained break above trend channel resistance $285/290 area, confirmation the uptrend has resumed.

Australian earnings preview – CSL

Source Tradingview. The figures stated areas of the 12th of August 2020. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.