CSL struggled through September & October on concerns around earnings in its Vifor nephrology and dialysis (kidney disease treatment) business impacted by the “Ozempic revolution”. At MM, previously, we’ve been concerned with the company’s future pathway of growth, but after falling ~20%, the stock no longer looks like an expensive defensive play, it is arguably cheap trading on 26x for FY24. We like the risk/reward towards CSL from here, although it is likely to be a news-driven, volatile journey through 2024.
- We are unlikely to buy CSL into dips while we hold ResMed (RMD) due to their recent strong correlation.
MM is now cautiously bullish towards CSL
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