The CSL Limited (ASX: CSL) share price is up 2.7% to $195 today despite the healthcare giant releasing no specific news to the market.
The CSL share price is still around 15% down from highs it hit in September at the top of a bull market in healthcare and growth shares generally.
It’s forecasting underlying profit growth of 10%-14% in FY 2019, although it’s possible it will upgrade its full year profit guidance later this month on the back of a weaker Australian dollar and strong operating performance. Even if it doesn’t, CSL shares look around fair value given it has a wide moat across multiple businesses, is investing for the future, and posting double-digit growth.
CSL has around 30 new products in development at any given time including CSL 112, CSL 325 and CSL 326 all of which offer varying degrees of commercial success. The rising share price probably reflects investor expectations of a strong interim profit report this February.
Motley Fool contributor Tom Richardson owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.