CSL.ASX

17 October 2023

CSL shares edged up +0.6%, after last week’s “Ozempic” sell-off. CSL boss Paul McKenzie is confident that weight-loss drugs such as Ozempic are no threat to the company’s success as the biotech giant champions growth opportunities after a week of heightened investor scrutiny.

We see the stock as oversold, and welcome anything below $255 as an attractive entry point. As seen above we see RSI (Relative Strength Index) at 26 the lowest it has been in over a decade as an indicator that the stock is greatly oversold. CSL currently trades at $239 per share which is a 4-year low. On a valuation basis, CSL trades at 26x forward earnings which is “cheap” for a quality compounder like CSL – well below its historical average forward PE multiple of about 30-40x. We reiterate BUY on CSL.

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