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CSL Ltd (CSL) and tariffs

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Question asked 05/07/2025

CSL Ltd (CSL) and tariffs

Morning Shawn & Team, With markets encountering a barrage of headwinds in recent months & now trading at all time highs, do you think there is complacency for July tariff risks, or will they be 'shrugged off'? Specifically, do you see good value or more upside, or risk & more downside for CSL at current levels? It has traded in a range for the last 5 years, but is it at risk of the pending pharmaceutical tariffs if announced? Would this be short-lived knock anyway & to be seen as an opportunity to pick up, or best to get out ? What effect does a lower US$ have on CSL earnings please? Thank you, Bernie

Answer

Hi Bernie,

A few questions in here which we’ve addressed individually:

We’re are overall bullish equities believing that tariffs are already “old news”, and its time to focus on good old fashioned economics and whether central banks can maintain the global economy in its “Goldilocks” balance of low inflation, decreasing interest rates, stable employment, allowing strong companies to grow earning’s.
We can see CSL grinding out some gains in 2025 in line with a strong market that’s favouring some stocks that have struggled in the last 6-12 months but we still have no intention of adding CSL to out “Hitlist” just yet. We see some risk at their upcoming earnings in August.
Tariffs could be bad news for CSL as we’ve discussed before around Section 899 but much of this is probably in the current share price.
CSL earns around 50% of its revenue in the US hence a weak $US Dollar is a headwind for this ASX listed healthcare giant.

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CSL Ltd (CSL)

LAST UPDATED 03/07/2025 15:16

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