The market’s third-largest company, blood plasma giant CSL, advanced +2.3% on Wednesday, with ~20% of the gain occurring in the “Match.” The stock has range-traded since 2020 as it’s struggled to maintain an attractive growth profile, almost inevitable with a market cap of ~$120bn. However, we note the market is now pricing CSL on the cheap side of history at a PE of 22x, reflecting a more tepid growth outlook, leaving room for a positive surprise.
- We have no plans to add CSL to our Hitlist following February’s weaker and more complex set of results, though we do think it’s offering some value at current levels.
MM is neutral to cautiously bullish CSL ~$250
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