Why the CSL Share Price Rose Today

August 14, 2014

By MoneyMorning.com.au

What Happened to the CSL Share Price?

CSL Limited [ASX:CSL] is a biopharmaceutical company involved in research, manufacturing and product marketing. CSL develops a range of products to treat viral and bacterial illnesses, bleeding disorders and coagulation disorders such as blood clotting.

The CSL share price closed 4.73% higher on Thursday.

Why Did This Happen to the CSL Share Price?

On Wednesday, CSL announced its 2014 end of financial year results. Net Profit was up $1.31 billion, 7.8% higher than the previous year. In addition, revenue was $394.8 million higher.

CSL also declared an interim dividend of 60 cents. Making the full year dividend $1.13. Up from $1.02 in 2013.

And finally, even though CSL just completed a $950 million buy back, they are teasing the market, suggesting the company may consider another $950 million buy back this financial year.


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What Now For CSL?

The financial results pushed CSL’s share price back over $70 for the first time in two months. Prior to this, the stock was falling and looking like it was going to test a very sketchy technical support level of $62.

The net profit result slightly surpassed CSL’s own expectation of 7% for 2014. For this financial year, CSL estimate a 12% net profit.

Some analysts believe CSL’s market share will be tested this year and next. Baxter International Inc [NYSE:BAX] is soon to have immunoglobin product HyQvia approved in the US. This product could take market share from CSL’s Hizentra.

After trading above $70 today, expect some profit taking over the next couple of days as investors cash in on this recent high. However CSL still remains a solid defensive stock.

Shae Smith
Editor, Money Weekend

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The post Why the CSL Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.


By MoneyMorning.com.au