Can you give some insight into why CSL has under-performed since the panic of COVID?

CSL traded very well during panic time but now it is going opposite direction to the market. Do you know why? Is there any particular reason? Is it a good buy below $290?

A: CSL has underperformed over the last month or so. Become a little “unloved”. I would put this down to:

  • Global rotation out of healthcare stocks into other “deeper value” stocks (eg. banks);
  • Index funds are now fully invested;
  • Rising Australian dollar (CSL earns 90% revenue outside Australia)
  • It may have had a bit of “virus treatment/vaccine” premium in it (which now looks unlikely)


Citi has upgraded CSL today from Neutral to Buy. Overall, the brokers remain positive with 2 buys, 4 neutrals and a target price of $314.82 – about 9.3% higher than yesterday’s closing price.

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