CSL Ltd (ASX: CSL) shares have had a volatile year. The biotech giant's stock is up 6% this year to date, at a time when markets have been flying.
Fortunes may have changed in the short term after the company released its FY24 earnings on Tuesday.
After a brutal selloff on the same day, shares fell to lows of $294 apiece before stretching nearly 4% higher by Friday afternoon.
They finished the week at $305.34 apiece.
After the company delivered mixed results, should you consider buying CSL shares now? Let's see what the experts think.
Strong FY24 results, strong broker reactions
CSL shares were volatile this week after the company released its FY24 numbers. It reported an 11% rise in revenue to US$14.8 billion, leading to a 15% increase in net profit after tax before amortisation (NPATA).
The CSL Behring business was a standout, with revenue up 14% to US$10.61 billion. Immunoglobulin sales also surged 20% to US$5.666 billion.
Despite these strong results, CSL's guidance for FY25 left some investors wanting more.
As my colleague James reported, the company expects revenue growth of 5% to 7% and NPATA of US$3.3 billion at its upper range of estimates.
This represents growth of 10% –13% year over year, more than outpacing the rate of inflation.
The forward guidance hit the mark for some analysts.
Citi retained its buy rating on CSL shares and raised its price target to $345.00. Despite the softer-than-expected guidance, the broker sees potential in CSL's long-term growth.
Citi also believes CSL Behring's margins will improve, supporting future profitability.
Morgans also kept its buy rating with a price target of $330.75. It noted that CSL's results met expectations, highlighting CSL Behring's strong performance and growth potential in FY25 as well.
CSL shares future prospects: A closer look
CSL's management remains positive about the future. CEO Dr Paul McKenzie emphasised potential margin improvements in CSL Behring, driven by efficiency gains in plasma collections and manufacturing.
Speaking on the results, he said:
We have a number of initiatives underway in plasma collections and our manufacturing operations that will continue to drive efficiencies…
We are excited about the potential growth in our transformational gene therapy product for haemophilia B patients, HEMGENIX and we are looking forward to bringing our monoclonal antibody, Garadacimab, for the treatment of HAE, to market in FY25, subject to receiving regulatory approvals.
In my opinion, CSL's fundamentals are robust, and this was cemented in its FY34 numbers. Time will tell to see how the market reacts
Foolish takeaway
While some might deem CSL's FY25 guidance cautious, I believe the company's fundamentals are sound. Brokers share this opinion.
Both Morgans and Citi are bullish, but we'll have to see what the market has in store or the company.
CSL shares are up 13% in the past 12 months.
