CSL Ltd (CSL)
Hi James, have held CSL for some time in our portfolio. What are your current thoughts on the stock with increased rhetoric from Trump around tariffs on health care? Thanks, Peter
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Answer
Hi Peter,
We’ve only held CSL in our Active Growth Portfolio since early July, and so far so good even with President Trumps tariff interruptions. The healthcare sector has struggled a touch on the latest tariff chapter but as we’ve witnessed since April it hasn’t taken long for the market to look through the noise. Like all these big tarrif plans, there will be negotiations that occur and rates will be moved lower. It has created a lot of uncertainty and therefore, CSL has struggled, one of the reasons why it’s shares are trading on 22x relative to their historical average of 32x earnings, with the multiple expanding to 45x when things have been going well. We think these uncertainties are captured in the share price at current levels.
