The CSL Ltd (ASX: CSL) share price has strengthened so far in H1 FY23, gaining 7.5% over the past month of trade.
Meanwhile, the broader sector has pushed higher recently as well. The S&P/ASX 200 Health Care Index (ASX: XHJ) has also lifted around 7% in the past month.
Broker downgrades CSL earnings forecasts
Analysts at investment bank Jefferies have reduced their earnings per share (EPS) projections for FY23 in a recent note.
The broker now estimates CSL will achieve EPS of $2.81 per share for the full year. That's a 6-cent reduction off previous estimates of $2.87.
However, the consensus of analyst estimates has projected CSL to deliver $2.49 in EPS for the coming 12 months.
Despite the downgrade, Jefferies still sits roughly 15% above the consensus with its bottom-line estimates for CSL. It also forecasts $3.40 in EPS for FY24 from the biotech giant.
Further, every analyst covering the company rates it a buy right now, according to Refinitiv Eikon data.
As such, momentum continues for the company. The CSL share price has opened in the green today and is currently trading at $292.13, up 1.88%.
The company generated $464 million in free cash flow (FCF) last half, with a 14% return on invested capital.
Investors realise a 1% yield on this FCF with a corresponding 1% dividend yield.
It also sits on a debt to asset ratio of 23%, with debt financing just 28% of the company's total capital, according to calculations derived from CSL's financial statements.
The consensus price target on the stock is also $316 per share, according to Refinitiv Eikon's consensus data.
