CSL Ltd (ASX: CSL) shares continued to shine last quarter, with the stock up 11% in the last three months.
Shares in the biotech giant are currently trading at $305.52 apiece, having nudged to new all-time highs of $312.15 on July 23.
As CSL shares have curled down from these heights, investors are undoubtedly curious about what's caused this price action and what to expect next.
Here's a recap of recent developments and what might lie ahead for CSL shares.
CSL shares rally on fundamentals
CSL shares have recently reached new highs, reflecting positive market and investor sentiment. They are up nearly 4.5% in the past month of trade, having gained $17.12 per share throughout July.
The gains are also underpinned by the company's financials. Put simply, CSL's financial performance has been robust.
In the first half of FY24, the company reported an 11% increase in revenue to US$8.05 billion and a 20% rise in net profit after tax (NPAT) to US$1.94 billion.
That means for every $1 in revenue, the company produced $1.80 of NPAT. Growth was driven by the strong performance of the CSL Behring division, particularly in the domain of immunoglobulins.
Whilst those figures were posted in February this year, based on the results, it isn't surprising to see investors buying the stock well into the year.
Nor is it surprising to see many analysts rating the stock a buy during July. As my colleague Bernd reported, Shaw and Partners are bullish on CSL shares, notwithstanding the biotech's dividends either.
What's next for CSL Shares?
Looking ahead, many experts believe CSL is well-positioned for continued growth. Broker sentiment towards CSL remains positive.
Analysts at Bell Potter say the company's plasma collection technology is expected to reduce collection times and improve margins.
The rollout of this technology is progressing faster than expected, Bell Potter says, which could further enhance CSL's profitability.
In early July, the broker viewed CSL shares as an "attractive buying opportunity," highlighting its potential for outsized earnings growth in the coming years.
Macquarie also had a bullish outlook in July, assigning a buy rating and a 12-month price target of $330. Both brokers see CSL as undervalued at current levels and anticipate significant upside potential.
Only time will tell what's next. The company will post its FY24 annual results later this month, and expectations are high. Some analysts are projecting over 20% earnings growth each year until FY26, so the bar has been set high.
We shall find out more in the company's upcoming financial results.
Takeout
CSL shares demonstrated solid performance in July. Many experts believe they hold promising potential for future growth.
As is always the case, make sure to conduct your own due diligence and consider all the risks involved.
