Founded in 1916 and with its headquarters in Melbourne, CSL Limited is an Australian multinational specialty biotechnology company that researches, develops, manufactures, and markets products to treat and prevent serious human medical conditions. With revenue in 2019 at US$8.539 billion, its products include blood plasma, vaccines, antivenom as well as other laboratory and medical products. And Michael Gable thinks it’s in the buy zone.
“The CSL share price has underperformed the broader market over the last 12 months. The business has been affected by slower plasma collections, and the share price demand has been affected by the prospect of rising interest rates. With society moving towards normal and growth stocks coming back into focus again, I believe it is now time to buy CSL,” Michael said.
“In March this year, we saw CSL head back towards the 2020 low before bouncing again. The momentum has looked very strong these last few months and we can safely assume that CSL has put in a “double bottom”.
“This tends to be a powerful pattern to observe within an overall uptrend.
“We have seen CSL underperform previously when there were expectations of rising rates, such as the end of 2018.
“Once that concern was out of the way, the shares rallied nearly 50% the following year.
“A similar return from here would be extremely optimistic, but I do expect the shares to now trend higher from here,” he added.
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