The CSL (ASX:CSL) share price is up just 3% so far in 2021. Here's why

The company's shares have been on a rollercoaster ride…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Limited (ASX: CSL) share price has been a hot topic over the course of the year. The company has been severely challenged by COVID-19 restrictions and this has had a profound impact on its share price.

The greatest impact has been a dramatic decline in plasma donations in the United States during the crisis.

The global biotech's shares closed Thursday's session at $294.65 apiece, down 1.02%.

A doctor shrugs and holds his hands out.

Image source: Getty Images

What has CSL announced lately?

While CSL hasn't reported any price-sensitive news since its full-year results, it did release its R&D investor briefing on Tuesday.

The company highlighted that it spent more than US$1 billion on R&D activities in the past financial year. This consisted of new product development, market development, and life cycle management products.

A number of therapeutics were approved for use across Japan, the United States, Europe, Russia, and Mexico. Most of these products came from CSL's immunology and haematology portfolio.

In its FY21 results, CSL reported that the immunology division made US$4,238 million (A$5,648 million), which was almost half of its total revenue of US$8,547 million (A$11,391 million). Treatments for haemophilia accounted for US$1,107 million (A$1,475 million) for the year.

In addition, the company is building a new cell culture facility in Tullamarine, Victoria. Scheduled to open in 2026, the plant will produce the next-generation cell-based seasonal influenza vaccines.

CSL has an $800 million 10-year supply agreement with the Commonwealth Government for antivenoms, Q-fever vaccines and pandemic influenza vaccines.

Two broker notes came in yesterday, both raising their outlook on the CSL share price.

The first from Jefferies revealed a bullish assessment with the 12-month price target lifted by 3.1% to $338. Leading global investment firm Goldman Sachs also improved its rating on CSL shares by 1% to $305.

How is CSL comparing against the ASX 200?

The S&P/ASX 200 Index (ASX: XJO) has returned 10.9% to shareholders in 2021 compared to CSL's 3.4%.

However, when looking at a longer timeframe, this is where things start to turn.

The benchmark index has risen by an average of 6.38% per year over the past 5 years and 5.99% per year over a 10-year period. CSL, on the other hand, has surged with a yearly average of 22.98% and 25.69% respectively.

CSL share price snapshot

Since the pandemic began, CSL shares have been on a rollercoaster ride and are down about 12% since February 2020.

CSL has been hampered by the slow recovery from COVID-19, affecting the company's business operations both domestically and internationally.

On valuation grounds, CSL is the second-largest company on the ASX with a market capitalisation of roughly $134.68 billion.

Motley Fool contributor Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX biotech stock just jumped again as its lead drug trial moves ahead

The latest trial milestone sends this ASX biotech stock higher today.

Read more »

Scientist looking at a laptop thinking about the share price performance.
Healthcare Shares

Why are Telix shares sinking 7.5% today?

Let's see what this healthcare stock has announced today.

Read more »

A smiling businessman sits at a desk with bags of mony, indicating a share price rise after funding has been approved
Healthcare Shares

Telix Pharmaceuticals upsizes convertible bonds to US$600 million

Telix Pharmaceuticals has upsized its convertible bond issue to US$600 million, enhancing financial flexibility and repurchasing existing bonds.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Healthcare Shares

Telix Pharmaceuticals Investor Presentation: 56% FY25 revenue growth, pipeline advances

Telix Pharmaceuticals books 56% higher FY25 revenue, advances clinical pipeline, and issues upbeat FY26 guidance.

Read more »

A woman looks unimpressed on a blue background.
Healthcare Shares

What on earth's going on with CSL shares?

CSL’s growth slowed, and its premium valuation reset hard.

Read more »

Two happy pharmacists standing together in a pharmacy.
Healthcare Shares

Why Clarity Pharmaceuticals shares just fell 5% on today's announcement

Investors are balancing Clarity's long-term potential against near-term uncertainty.

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Healthcare Shares

Still down 40%, are Pro Medicus shares primed to break out?

Two major US contract wins in as many weeks could mark a turning point in sentiment.

Read more »

Happy healthcare workers in a lab.
Healthcare Shares

Telix share price leaping higher today on $3 billion US news

Investors are snapping up Telix shares on Monday following big US news.

Read more »