I am thinking of selling my CSL shares. I bought them at $97 and they are now trading at about $140. Have they become over priced? What do you think?
Regards
A: Thanks for the question.
As you probably are aware, I think CSL is one of Australia’s finest companies. If not number one, then very, very close.
However, whenever a stock is trading on a multiple of 30.7 x earnings (and 26.7x forecast FY19 earnings), you have to be careful.
So, taking some profits is a reasonable strategy.
But I am not sure that I would sell my entire holding, and I think you need to be pretty disciplined about buying back in.
For the record, the brokers see CSL as pretty fully valued. According to FN Arena, the current consensus target price is $140.77.
Hope this helps
regards
