The juggernaut that is CSL just keeps marching on with shares in the company pushing above the $300 level for the first time today, seeing its market capitalisation swell to more than $135 billion.
A bullish broker note from Credit Suisse may have contributed to the latest push higher with analysts at the investment bank flagging a potential earning upgrade in the company’s first-half results.
“The current market dynamics…are supportive of 11 per cent earnings growth in FY20 and 22 per cent earnings growth in FY21 and it is likely management will raise guidance at the first half-results,” it told clients.
Credit Suisse has upgraded its earnings per share forecasts for CSL by around 2 per cent, resulting in its price target moving up to $320. It retains an outperform rating on the stock.
“While CSL’s valuation may be viewed as demanding, trading at a 39.3 times 12-month forward P/E and a 90 per cent premium to S&P/ASX 200 industrials ex-financials, the valuation is justified given CSL’s strong market position in a niche industry that has robust fundamentals,” it said.
CSL shares are up 0.5 per cent at $299.31 as at the time of writing.
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