The CSL Ltd (ASX: CSL) share price is dipping today, down 0.4% in afternoon trade.
Shares in the S&P/ASX 200 Index biotechnology company are currently changing hands for $278.03 apiece.
As you can see in the chart below that puts the CSL share price down 9.8% since the closing bell on 13 June.
The ASX 200 biotech stock remains up 1.6% over the past 12 months. If we add in the $3.38 in full-year dividends, CSL's accumulated value is up 3.5% over the year.
What happened on 14 June?
The CSL share price dropped a precipitous 6.9% on 14 June after the company cut its FY23 profit forecast due to the negative impact of higher-than-expected foreign currency movements.
The ASX 200 biotech share also offered FY24 guidance for net profits after tax and amortisation (NPATA), expecting profits to increase by 13% to 18% year on year. CSL forecast FY24 NPATA of approximately US$2.9 billion to US$3.0 billion at constant currency.
That disappointed investors on the day, as it came in below consensus expectations of US$3.5 billion NPATA.
Can ASX 200 investors expect the CSL share price to lift off in FY24?
With only two full trading days left in FY 2023, ASX 200 investors are eyeing the year ahead.
As for the CSL share price, the majority of analysts remain bullish on the 12-month outlook for the biotech stock.
Following on CSL's 14 June update, Citi analysts noted:
The trading update was about resetting the market's expectations for the recovery of gross margins in the Behring division [the company's plasma segment], as both donor fees and labour cost inflation remain higher than anticipated.
Citi retained its buy rating, cutting its price target to $340.00 from $350.00. That implies a potential 22% upside for the CSL share price in FY 2024.
Macquarie analysts also remain optimistic on the outlook year ahead for CSL in the wake of the 14 June update.
Macquarie stated:
While we have moderated near-term gross margins for CSL Behring, outer-year forecasts remain largely unchanged with upside from pipeline contributions and improved Ig [immunoglobulin] yields.
Noting that they "continue to see the growth outlook as attractive for CSL", Macquarie analysts maintained their outperform rating with a $326 price target. That's more than 17% above today's price.
Morgans is also bullish on the ASX 200 biotech stock. The broker's analysts said:
We believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases…
Morgans has an add rating and a $323 price target on CSL shares, 16% above the current price.
We'll round off with Wilsons equity strategist Rob Crookston, who also sees an upside for the CSL share price in FY 2024.
Commenting on the ASX 200 biotech shares outlook following its 14 June update, Crookston said:
Looking forward, with the market's expectations re-anchored, we see material earnings upside from expected product launches over the medium-term, in addition to the gradual recovery in Behring's gross margins.
