Its bio range of vaccines and anti-venoms remain unrivalled and its operations in the key US and Europe markets continue to attract high level expertise and investment.
From a fundamental point of view, there are three key reasons CSL continues to be a stock of choice:
- EPS growth over the past six years has averaged 21%; the consensus estimates see CSL growing at a rate of 16% in FY15 and FY16.
- The company’s growth profile remains a core belief of management and therefore funding for organic growth comes from spending 6% of revenue in its research and development divisions. The results that are being produced from this division is highly encouraging, particularly the developments in the Immune Globulin subcutaneous liquids (IG), which is progressing well in the US and European markets.
- Scale and product innovation, coupled with very measured and conservative capital management we see as key drivers for CSL’s value going forward and remains a key reason why we like CSL’s strategy.